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Economic impact assessment
Economic impact assessment

Show all necessary work in a neat and orderly manner.
Show all necessary work in a neat and orderly manner.

Linear Equation Word Problems
Linear Equation Word Problems

... Notice that you don’t have to rely on just your memory to recall this formula. You can figure out what the formula should be by just asking yourself what you’d do in a simple case that is familiar from real-life. I will use this formula in the problems below. ...
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... closer look, however, reveals this profitability was mainly a result of lower loan loss provisions. Provisions declined year-over-year for the ninth consecutive quarter, but now appear to be levelling off. Whether or not banks can continue these profitability trends remains a key concern in the near ...
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... but it tends to increase as the interest rate falls. However, from the circular flow identity (1 = C/Y + I/Y) and the result that I/Y rises, the former effect must outweigh the latter; i.e. C/Y falls in equilibrium. b) If firms become pessimistic about the future, their expectations of future profit ...
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Present value

In economics, present value, also known as present discounted value, is the value of an expected income stream determined as of the date of valuation. The present value is always less than or equal to the future value because money has interest-earning potential, a characteristic referred to as the time value of money, except during times of negative interest rates, when the present value will be greater than the future value. Time value can be described with the simplified phrase, “A dollar today is worth more than a dollar tomorrow”. Here, 'worth more' means that its value is greater. A dollar today is worth more than a dollar tomorrow because the dollar can be invested and earn a day's worth of interest, making the total accumulate to a value more than a dollar by tomorrow. Interest can be compared to rent. Just as rent is paid to a landlord by a tenant, without the ownership of the asset being transferred, interest is paid to a lender by a borrower who gains access to the money for a time before paying it back. By letting the borrower have access to the money, the lender has sacrificed the exchange value of this money, and is compensated for it in the form of interest. The initial amount of the borrowed funds (the present value) is less than the total amount of money paid to the lender.Present value calculations, and similarly future value calculations, are used to value loans, mortgages, annuities, sinking funds, perpetuities, bonds, and more. These calculations are used to make comparisons between cash flows that don’t occur at simultaneous times. The idea is much like algebra, where variable units must be consistent in order to compare or carry out addition and subtraction; time dates must be consistent in order to make comparisons between values or carry out simple calculations. When deciding between projects in which to invest, the choice can be made by comparing respective present values of such projects by means of discounting the expected income streams at the corresponding project interest rate, or rate of return. The project with the highest present value, i.e. that is most valuable today, should be chosen.
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