Question

According to the rate of return approach, present value is equal to:

Question 5 options:

a)	?Xn/(1 – i)n.

b)	[?Xn/(1 – i)n] – C.

c)	[?Xn/(1 – i)n] + C.

d)	?Xn/(1 + i)n.

Which of these is NOT an example of an intellectual property right?

Question 6 options:

a)	a copyright on a short novel you plan to publish

b)	the name of a famous basketball player

c)	a patent on a new skateboard feature

d)	a trademark on the McDonald's logo

Reducing the supply of funds will _____ interest rates, _____ the cost of investment, and result in _____ investments in education.

Question 7 options:

a)	decrease; decrease; fewer

b)	increase; increase; fewer

c)	increase; increase; greater

d)	decrease; decrease; greater

If an asset pays $300 per year forever, what is this asset worth in terms of present value if the interest rate is 6%?

Question 8 options:

a)

$500

b)

$1,800

c)

$5,000

d)

$3,000

Answer 1