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Assume that you have two ways to get the money, one way is to have it at present, so PV=10,000, another way is to get it in the future, so FV=11,000. Which one would you like to choose ? Why?
And N=2 years, i=3%
Business Economics, Economics
Explain and discuss the following quote: "Politicians can be strange. They have been calling for the breakup of firms as diverse as energy companies and tech giants like Microsoft and Google because they believe these co ...
For a population of individuals that has a standard deviation of 10, what is the standard error of the mean for samples of size (a) 2, (b) 3, (c) 4, (d) 5, (e) 10, (f) 20, (g) 100?
Lisa and David have been married for two years. They have just decided that summer of 2020 should be spent in Switzerland. They figured out that in order to meet the cost of the entire vacation they would only have to de ...
A $1000 utility bond with 14 years remaining before maturity can now be purchased for $760. It pays interest of $20 each 6-month period. What rate of return is earned by purchasing the bond at the current market price pl ...
What does this demand sequence mean? (I am assuming that x,y,and s are related products) Qx= 1.5 -3.0Px + 0.8(Income) + 2.0 Py -0.6 Ps + 1.2(Advertising) Then a year passes and the values are: Px=2 I=2.5 Py=1.80 Ps ...
A medical researcher is interested in determining whether a new medication for lung cancer is effective in a group of patients with early-stage disease. Explain what a Type I and Type II error would be in this study. (Be ...
The time to complete 1 construction project for company A is exponentially distributed with a mean of 1 year. Therefore: (a) What is the probability that a project will be finished in one and half years? (b) What is the ...
In lecture we discussed why the production possibilities frontier (the boundary of the production possibilities set) is bowed 'outwards'. When might the production possibilities set be bowed 'inwards'? Give an example of ...
Fully explain at least one reason why many developing countries suffered serious debt crisis in the early 1980s. Does this reason you explained in debt support Krueger & Srinivasan's argument? Why or why not? How could t ...
The tobacco industry is a prime example to consider when talking about price elasticity of demand. While nicotine use can be addictive for many users, it is not addictive for the so-called "social smokers". What can we s ...
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Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate
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