EBK MACROECONOMICS (FOURTH EDITION)
EBK MACROECONOMICS (FOURTH EDITION)
4th Edition
ISBN: 9780393616125
Author: Jones
Publisher: YUZU
Question
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Chapter 7, Problem 7E

(a)

To determine

Calculate the present discounted value at the different interest rate.

(b)

To determine

Calculate the present discounted value of $50,000 received 10 year from now.

(c)

To determine

Calculate the present discounted value of $100 every year and forever starting immediately.

(d)

To determine

Calculate the present discounted value of $100 every year and forever starting 1 year from now.

(e)

To determine

Calculate the present discounted value of $100 for the next 50 year starting immediately.

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Students have asked these similar questions
5. We learnt the following equation in the class: Ak = sy - (n + 8)k where y = ko. Now, I transform this equation into: Ak/k = sy/k - (n + 8). I want you to use a diagram to show the steady state solution of this equation (In the diagram, there will be two curves - one represents sy/k and one represents (n + 8). In the steady state, of course, Ak/k = 0). In this diagram, the x-axis is k. What will happen to this diagram if the value of n increases?
Not use ai please
3. A country has the following production function: Y = K0.2L0.6p0.2 where Y is total output, K is capital stock, L is population size and P is land size. The depreciation rate (8) is 0.05. The population growth rate (n) is 0. We define: y = ½, k = 1 and p = . Land size is fixed. L a) Find out the steady state values of k and y in terms of p, the per capita land size.
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