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1. If you have four years child by the time he/she turns eighteen and you need a 100,000 for them and the interest rate is 4%. How much you need to save now? What is the present value?
2. Andrew has $500 he put the side $500 semi annual and he planned to keep the money for 15 years and the interest rate is %6 how much would he have in next 15 years? Looking for future value?
3.net present value, person wants to open up a club they have 150,000 at the beginning he expect the profit of 50,000 after 2 years,3 years he is expecting $70,000 profit and the $60,000 in 4 years! Should he begin his investment if the interest rate is 3.5 annual?
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
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