Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. if the interest rate is zero, a promise to pay $3,

If the interest rate is zero, a promise to pay $3,000 in two years is equal to...

50.1K

Verified Solution

Question

Finance

Ifthe interest rate is zero, a promise to pay $3,000 in two years isequal to receiving the money today. Using one or more of the coreprinciples of money and banking, explain why this statement is trueor false.

Answer & Explanation Solved by verified expert
3.8 Ratings (463 Votes)
The statement is true Explanation with respect tocore principles of money banking Time has value Time has values Time affects the value of financial transaction A dollar today    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Ifthe interest rate is zero, a promise to pay $3,000 in two years isequal to receiving the money today. Using one or more of the coreprinciples of money and banking, explain why this statement is trueor false.

Other questions asked by students

Q

QUESTION 1 When performing the urease test, the agar changes from blue to green if the organism...

Medical Sciences
Q

Moranda and Sill, LLP, has served for over 10 years as the auditor of the financial...

Accounting
Q

A dipole with dipole moment 3 x 10 9 C m is placed in external...

Physics
Q

Find f x for the following function Then find f 6 f 0 and f...

Basic Math
Q

x t cos 4 t 2cos 2 t 3 What are the Fourier series coefficients...

Basic Math
Q

A roast requires 3 hours and 40 minutes in the oven to be cooked. In...

Basic Math
Q

Find the domain of the function f(x) = x + 17In interval form, the domain...

Algebra
Q

According to GAAP, which is NOT a specific objective? A. to provide information about an...

Accounting
Q

Do you think that the listed Principles of Digital Development are relevant to you or...

Accounting
Q

Burich Company reported short-term borrowings of $4.20 million, long-term borrowings of $6.97 million, repayments of...

Accounting
Q

Whirly Corporations contribution format income statement for the most recent month is shown below: ...

Accounting
Q

A stock's return has the following distribution: Calculate the stock's expected return. Round your answer...

Finance