based on the figure above what sort of policy is the government likely to pursue
ID: 2614929 • Letter: B
Question
based on the figure above what sort of policy is the government likely to pursue in this case if it wants output as the price of goods and services decrease the value of mone based on the figure above what sort of policy is the government likely to pursue in this case if it wants output as the price of goods and services decrease the value of mone based on the figure above what sort of policy is the government likely to pursue in this case if it wants output as the price of goods and services decrease the value of mone based on the figure above what sort of policy is the government likely to pursue in this case if it wants output as the price of goods and services decrease the value of mone based on the figure above what sort of policy is the government likely to pursue in this case if it wants output as the price of goods and services decrease the value of mone oG HEALso preveits changes to this answer. Question 1 Consider the following set of cash-flows to be received over the next 3 years (at the end of each year): Year Cash flow $100 $225 $300 If the interest rate is 10%, what is the future value of this set of cash flows at year 3? a. 502.25 b. 625.00 c. 668.50 d. 710.24 a. $502.2 b. $668.50 Oc. $625.00 O d. $710.24 Moving to the next question prevents changes to this answer.Explanation / Answer
a. Cash Flow received at the end of Year1 is $100
At the end of year 3, it will receive interest for 2 years @ 10%
Future Value = $100 * (1 + r )n
where r = rate of interest
n = number of years
Therefore future value = $100 * (1 + 0.1)2
= $100 * 1.21
= $121
b. Cash Flow received at the end of year 2 is $225
At the end of year 3, it will receive interest for 1 year @ 10%
Future Value = $225 * (1 + r )n
where r = rate of interest
n = number of years
Therefore future value = $225 * (1 + 0.1)1
= $225 * 1.1
= $247.5
c.Cash flow received at the end of year 3 id $ 300
And it will not receive any interest and hence its future value would be $300
Therefore total cash flows = a+ b+ c
= $121 + $247.5 + $300
= $668.50
Ans is Option C
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