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

Determination of C - Im and NT, Once Y is determined, almost all of the oth...

Once Y is determined, almost all of the other variables are determined since they are either exogenous or they depend on Y. From Y we can determine C by consumption function, I m

Trade in services, TRADE IN SERVICES: India had objected to  the  incl...

TRADE IN SERVICES: India had objected to  the  inclusion of  trade in services  in  the agreement for  the UR  negotiations. The  Indian negotiations continued to raise object

Good to peanut butter, Bread is a related good to peanut butter: show on th...

Bread is a related good to peanut butter: show on the graph of the market for peanut butter, the impact on the price and quantity from an increase in the price of bread.

Create a graph showing average wages, For this question you will use the da...

For this question you will use the dataset "march01.dat", which includes wages (column 1), age (column 2), a dummy variable indicating females (column 3), and years of education (c

Perfect competition and monopoly competition, What are the differences betw...

What are the differences between perfect competition and monopoly competition? Ans) In a monopoly, you are gaining an unfair benefit over any competition because you own so many

What do you mean by supply of money, Q. What do you mean by Supply of money...

Q. What do you mean by Supply of money? Supply of money The supply of money is an exogenous variable in the IS-LM model Money supply is enti

How internal resources important, Why is it important to study the internal...

Why is it important to study the internal resources, capabilities, and activities of firms? What insights can be gained?

What is this volume in acre-feet, 1. Lake Kickapoo, TX, is approximately 12...

1. Lake Kickapoo, TX, is approximately 12 km in length by 2.5 km in width. The inflow for the month of April is 3.26 m3/s and the outflow is 2.93 m3/s. The total monthly precipitat

Conclude a hypothesis test, Will improving customer service result in highe...

Will improving customer service result in higher stock prices for the companies providing the better service? When a companys satisfaction score has improved over the prior years r

Stimulate aggregate demand, The graph shows that if policymakers respond im...

The graph shows that if policymakers respond immediately to an oil price shock by stimulating aggregate demand, shifting AD to AD* then the level of output will remain constant. Th

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