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?

View Complete Question

Related Questions in Microeconomics

Q : Relative Prices-Rational consumer I

I have a problem in economics on Relative Prices-Rational consumer. Please help me in the following question. The rational consumer buying decisions based on: (1) Present prices. (2) Absolute prices. (3) Nominal prices. (4) Relative prices.

Q : Illustration of a natural monopoly Of

Of the given firms, the best illustration of a natural monopoly is: (i) Dell, the largest seller of personal computers. (ii) Toyota, i.e., the huge car company in the world. (iii) OPEC, i.e., the international oil cartel. (iv) Google that dominates th

Q : Profit Maximization in Resource Markets

I have a problem in economics on Profit Maximization in Resource Markets. Please help me in the following question. To make a decision regarding resource hire, the firm should consider: (1) The price of resource. (2) The productivity (MP) of resource. (3) Output price

Q : Make economic profits by

A profit-maximizing monopolist will certainly be capable to generate economic profits when, at certain level of output: (w) average fixed costs [AFC] are very high. (x) average total costs [ATC] lies above the demand curve. (y) averag

Q : Accounting profits when economic profit

Whenever economic profit equivalents zero, then the accounting profits: (i) Are explicit costs of the remaining in business. (ii) Will induce raised investment even when accounting costs are much low. (iii) Are too zero. (iv) Reflect normal returns on the investment t

Q : Weekly economic profit of profit

The profit maximizing firm currently here in illustrated graph can generate a weekly economic profit of approximately: (1) $29,000. (2) $31,500. (3) $34,000. (4) $36,500. (5) $39,000.

Q : Illustrate normative statement In

In economics illustrate normative statement?

Q : Describe the wave of mergers in the

Describe the wave of mergers in the banking industry?Many economic factors have caused banking institutions to merge over the past various years. What are these factors comprise Please explain breifly...

Q : More elastic demand for labor The

The demand for labor is more elastic the: (i) larger labor costs are like a proportion of total costs. (ii) shorter the time interval considered. (iii) greater the supply of labor. (iv) more difficult this is to substitute one resource for another. (v

Q : Total revenue for profit-maximizing TR

TR stands for total revenue for this profit-maximizing pure competitor as in below figure equals area: (i) 0Phq2. (ii) 0bgq2. (iii) Pbgh. (iv) 0aeq1. (v) daef.

Discover Q & A

Leading Solution Library

Avail More Than 1439203 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1950849
Asked

3,689

Active Tutors

1439203

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment