All else equal, which of the answers below will result in a higher future value ?...
All else equal, which of the answers below will result in a
higher future value ?
|
A higher amount of compounding periods |
||
|
A lower interest rate |
||
|
A shorter period of time to maturity |
||
|
A lower present value |
Homework Answers
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All else equal, which of the answers below will result in a
higher future value ?...
luck! Question 3 All else being equal, which of the following statement about time value of...
luck! Question 3 All else being equal, which of the following statement about time value of money is NOT correct? The higher the discount rate, the lower the present value The higher the interest rate, the higher the future value The higher the number of periods, the lower the present value The higher the present value, the lower the future value - Previous Quiz sa required precision (ie, the number of digits after the decimal point). Good luck! Question 4...
Match the following terms with the description below. Annuity Compound interest [Choose ] ✓ A series...
Match the following terms with the description below. Annuity Compound interest [Choose ] ✓ A series of equal payments made over equal time periods. The amount of money that accumulates at some future date as a result of making equal payments over equal intervals of time and The amount of money that, if invested at some rate of interest today, will generate a set number of equal periodic payments that are made The process of adding interest to principal for...
Which of the following statements is true? A given present value will result in a higher...
Which of the following statements is true? A given present value will result in a higher future value if annual compounding is used rather than monthly compounding, Effective Annual Rate is greater than Annual Percentage Rate when annual compounding is used. ОО A perpetuity with the cash flow starting two years from now will have the same present value as a perpetuity with the same cash flow starting a year from now. A group of cash flows of the same...
Which one of the following statements is correct? Time and future values are inversely related, all...
Which one of the following statements is correct? Time and future values are inversely related, all else held constant. The more frequent the compounding period, the lower the effective annual rate given a fixed annual percentage rate. When comparing loans you should compare the effective annual rates. An increase in a positive discount rate increases the present value. A perpetuity comprised of 5100 monthly payments is worth less than an annuity of S100 monthly payments provided the discount rates are...
Question 5 (3 points) The total value of all of your mortgage payments is a present...
Question 5 (3 points) The total value of all of your mortgage payments is a present value True False Question 6 (5 points) All things being equal you can calculate the future value of money through the following equation() Time/Interest * number of compounding periods Interest/compounding periods Time O Principal Interest/compounding period Time all of the above
The relationship between the future value of a single sum and the corresponding present value of...
The relationship between the future value of a single sum and the corresponding present value of a single sum is determined by two variables. What are those two variables? O A. conversion rate; length of compounding periods OB. interest rate per compounding period; number of compounding periods O c. interest rate; length of compounding periods OD. conversion rate; number of compounding periods
show all work compounding effect will result in a higher future value with more frequent compounding...
show all work
compounding effect will result in a higher future value with more frequent compounding 9. (a) Assume that you have borrowed $1,000 for 2 years and you have an annual interest rate of 12% (annually compounded). What is the monthly payment due on the loan? (1 point) (b) Switch gears here and now assume that the payments are made annually. What is the annual interest expense for the borrower, and the annual interest income for the lender, during...
Question 22 4 pts Which one of the following is a correct statement, all else held...
Question 22 4 pts Which one of the following is a correct statement, all else held constant? The present value is inversely related to the future value. The future value is inversely related to the period of time. The present value is directly related to the interest rate. The future value is directly related to the interest rate.
the higher the interest rate is the higher the duration, all else being equal t/f?
the higher the interest rate is the higher the duration, all else being equal t/f?
part 1 given info present value = periodic interest rate = number of compounding periods =...
part 1 given info present value = periodic interest rate = number of compounding periods = 190.00 0.080 6.00 What is the future value (single payment)? part 2 future value periodic interest rate = number of compounding periods = 301.51 0.080 6.00 what is the present value (single payment)? part 3 periodic payment periodic interest rate = number of compounding periods = 340.00 0.02 8.00 What is the future value of this annuity? part 4 present value (amount borrowed) =...
luck! Question 3 All else being equal, which of the following statement about time value of money is NOT correct? The higher the discount rate, the lower the present value The higher the interest rate, the higher the future value The higher the number of periods, the lower the present value The higher the present value, the lower the future value - Previous Quiz sa required precision (ie, the number of digits after the decimal point). Good luck! Question 4...
Match the following terms with the description below. Annuity Compound interest [Choose ] ✓ A series of equal payments made over equal time periods. The amount of money that accumulates at some future date as a result of making equal payments over equal intervals of time and The amount of money that, if invested at some rate of interest today, will generate a set number of equal periodic payments that are made The process of adding interest to principal for...
Which of the following statements is true? A given present value will result in a higher future value if annual compounding is used rather than monthly compounding, Effective Annual Rate is greater than Annual Percentage Rate when annual compounding is used. ОО A perpetuity with the cash flow starting two years from now will have the same present value as a perpetuity with the same cash flow starting a year from now. A group of cash flows of the same...
Which one of the following statements is correct? Time and future values are inversely related, all else held constant. The more frequent the compounding period, the lower the effective annual rate given a fixed annual percentage rate. When comparing loans you should compare the effective annual rates. An increase in a positive discount rate increases the present value. A perpetuity comprised of 5100 monthly payments is worth less than an annuity of S100 monthly payments provided the discount rates are...
Question 5 (3 points) The total value of all of your mortgage payments is a present value True False Question 6 (5 points) All things being equal you can calculate the future value of money through the following equation() Time/Interest * number of compounding periods Interest/compounding periods Time O Principal Interest/compounding period Time all of the above
The relationship between the future value of a single sum and the corresponding present value of a single sum is determined by two variables. What are those two variables? O A. conversion rate; length of compounding periods OB. interest rate per compounding period; number of compounding periods O c. interest rate; length of compounding periods OD. conversion rate; number of compounding periods
show all work
compounding effect will result in a higher future value with more frequent compounding 9. (a) Assume that you have borrowed $1,000 for 2 years and you have an annual interest rate of 12% (annually compounded). What is the monthly payment due on the loan? (1 point) (b) Switch gears here and now assume that the payments are made annually. What is the annual interest expense for the borrower, and the annual interest income for the lender, during...
Question 22 4 pts Which one of the following is a correct statement, all else held constant? The present value is inversely related to the future value. The future value is inversely related to the period of time. The present value is directly related to the interest rate. The future value is directly related to the interest rate.
part 1 given info present value = periodic interest rate = number of compounding periods = 190.00 0.080 6.00 What is the future value (single payment)? part 2 future value periodic interest rate = number of compounding periods = 301.51 0.080 6.00 what is the present value (single payment)? part 3 periodic payment periodic interest rate = number of compounding periods = 340.00 0.02 8.00 What is the future value of this annuity? part 4 present value (amount borrowed) =...
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