--%>
Assignment Help - homework help

Calculating Present Value by Interest Rate

When all bonds are perpetuities which annually pay $1000 (the sum of one thousand and 00/100 dollars) per annum, at an interest rate of 10 percent, the price of these bonds is: (1) $4000. (2) $5000. (3) $6250. (4) $8000. (5) $10,000.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

   Related Questions in Microeconomics

  • Q : Determine income elasticity of demand

    This given figure as in below demonstrates how the consumption of goods A, B, C and D differs as a family’s income changes. There income elasticity of demand equivalents 1 for: (w) good A. (x) good B  (y) good C. (z) good D

    		•
  • Q : Define linear consumption function

    Linear consumption function: It is a consumption function that is given on the basis of steady marginal propensity to consume. C = c + bY Here c = aut

    		•
  • Q : Economies of scale exist in range of

    Natural monopoly refers to a market or industry in that: (w) economies of scale exist across much of the complete range of market demand. (x) superior management enables a firm to remove its competitors. (y) a firm produces a good protected through pa

    		•
  • Q : Consideration of positive statement

    Choose the right answer . A positive statement is concerned with: A) some goal that is desirable to society. B) what should be. C) what is. D) the formulation of economic policy.

    		•
  • Q : Selling footballers-the economic

    State economic arguments on whether a football club must sell a significant player?

    		•
  • Q : What is market Give the answer of

    Give the answer of following question .A market: A) reflects upsloping demand and downsloping supply curves. B) entails the exchange of goods, but not services. C) is an institution that brings together buyers and sellers. D) always requires face-to-face contact betwe

    		•
  • Q : Isoquants and isocost lines By using

    By using isoquants and isocost lines, illustrates graphically that rise in y will result in a decline in the quantity demanded of x1 and also illustrates that rise in the price of x1 will result in a reduction in the quantity demanded of x1<

    		•
  • Q : Influences of Ceteris Paribus The Latin

    The Latin phrase applies to the idea which all other effects on some dependent variable are to be supposed constant if examining the effect of changing a single independent variable is as: (1) Fiat justitia, ruat coelum. (2) Platea unum. (3) Unum paribus. (4) Ceteris

    		•
  • Q : Feature of constant elasticity demand

    A constant elasticity demand curve as: (w) cannot be negatively sloped. (x) must be a straight line. (y) cannot be a negatively sloped straight line. (z) has a positive slope. I need a good answer on the topic of <

    		•
  • Q : Upwardly sloping supplies of resources

    When supplies of some resources are upwardly sloping to an industry, in that case increasing the industry’s output results within: (w) higher output due to increased profits from falling input prices. (x) reductions of output because of increase

    		•