Calculate present value and interest rate, Macroeconomics

Assignment Help:

You win a lottery. You have the choice of two ways to be paid. If you pick Payout Scheme X, you get $2,750 today. If you pick Payout Scheme Y, you get three payments: $1,000 today, $1,000 one year from today, and $1,000 two years from today. Which choice has the greater present value if all banks pay 10% interest per year now and in the future?

 


Related Discussions:- Calculate present value and interest rate

DEFLATION IN JAPAN, what happened to the equilibrium price level in Japan d...

what happened to the equilibrium price level in Japan during the early 2000s? How did Japan''s equilibrium price level adjust between the middle of 2008 and early 2010?

Medium run adjustment - economy adjustment, Suppose the economy is currentl...

Suppose the economy is currently in recession, and the exchange rate if fixed using the IS-LM model. a) Explain and illustrate the economy adjustment (in the medium run) b) E

Internal market forces, what are some internal market forces and how is the...

what are some internal market forces and how is the outcome of output, jobs, prices, growth, and international balance

Estimate the length of pipe, Engineers sometimes add chlorine to pipes to d...

Engineers sometimes add chlorine to pipes to disinfect water. It is desired to achieve four logs of kill. This means that the effluent concentration of microorganisms is 10 -4 tim

Aggregate supply and the as curve, Aggregate supply and the AS curve ...

Aggregate supply and the AS curve The AS curve is the aggregate supply as a function of P. It is horizontal when thesupply is low and upward sloping when the s

Pareto optimality, Diagramatic explanation of pareto optimality

Diagramatic explanation of pareto optimality

External Economies of Scale, Why might external economies of scale be of in...

Why might external economies of scale be of interest to developing countries?

Clasical model., if we impose any rule and regulation on clasical model lik...

if we impose any rule and regulation on clasical model like not expoit polutionso what is effect on factor of clasical model

Fiscal Policy, When is a balanced budget presented?

When is a balanced budget presented?

Outsourcing to the private sector help reduce the deficit, I need some help...

I need some help organizing an outline for a 5000-6000 word paper. What I am asking for is ideas on how to best organize this topic: "Should Government do it all? Can outsourcing t

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd