--%>

Present Value of a Perpetuity

When the interest rate is 5%, in that case the present value of a perpetuity which pays $500 each year beginning a year by today equals: (1) $500. (2) $1000. (3) $2500. (4) $5000. (5) 10,000.

Can someone explain/help me with best solution about problem of Economics...

   Related Questions in Microeconomics

  • Q : State normal good Normal good : It is a

    Normal good: It is a good for which, other things equivalent, a rise in income leads to a rise in demand.

  • Q : Perfect complements of Complementary

    I have a problem in economics on Perfect complements of Complementary Goods. Please help me in the following question. Left and right shoes are illustrations of nearly: (1) Production complements. (2) Perfect complements. (3) Joint production. (4) Per

  • Q : Proprietorships and Partnerships The

    The advantage of a partnership is: (i) Its ease of organization as compared to the corporation. (ii) Its limited liability. (iii) Its capability to outlive the partner’s death. (iv) The lack of divergences. C

  • Q : Poverty by throughout lives Which of

    Which of the given statements is not correct? (w) Wealth is less equally distributed than income. (x) U.S. tax and transfer programs tend to make income more evenly distributed. (y) Some disincentives for work plague even the most efficient of proposed welfare reforms

  • Q : Other determinants that producers want

    In addition to price, what are the other determinants that producers want to sell?

  • Q : Minimizes losses and maximizes profits

    When Firm B in demonstrated graph successfully minimizes losses and maximizes its profits that have: (1) covered overhead while incurring short-run economic losses. (2) potential economic profit of Pbgh per period. (3) total costs equal to 0phq2. (4)

  • Q : Average standard of living in Africa

    Elucidate briefly the average standard of living in Africa?

  • Q : Price discriminate raises output and

    When a monopolist which does not price discriminate raises its output, the firm’s total revenue: (w) should rise. (x) will rise when demand is elastic. (y) will rise when demand is inelastic. (z) will rise when marginal revenue = 0.

  • Q : Estimate federal poverty rate The

    The federal poverty rate computed by the Bureau of the Census is the: (w) ratio of poverty income to the average income. (x) number of persons below the poverty line. (y) percentage of persons below the poverty line. (z) official defi

  • Q : Purely competitive firms in long-run

    Purely competitive firms in long-run equilibrium as: (w) should use the most efficient technology available. (x) follow cut throat policies to produce more than society demands. (y) produce output levels where TC = TR = MR = MC = P = AR = AC. (z) have