Homework Answers
Answer - Option B
Now, the FV is directly proportional to number of compounding periods, interest rate.
Option A is incorrect. As annual interest rate decreases, future value would decrease.
Option C is incorrect. Deferring the original investment would decrease the number of compounding periods and hence FV would decrease.
Option D is incorrect as well. If the investing is made at end of period, number of compounding period would be one less and hence lower would be the FV.
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5. The future value of a single sum investment made today and held for ten years...
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Which of the following will increase the future value of a lump sum (for example, the...
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help plz 1) (20 pts) A single investment of $8,000 is made today at the We...
help plz
1) (20 pts) A single investment of $8,000 is made today at the We Tief Your Money Bank account and will remain invested for twelve years. At the end of the twelfth year, what is the future value if it is simple interest of 5% annually. a) (10 pts) Draw the cash flow diagram. Negative money is out of your pocket. b) (10 pts) Find the future value after twelve years.
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Which of the following will increase the future value of a lump sum (for example, the FV of $500 to be received N years from today). (Check all of the answer choices that are correct. This is an all or nothing question. Thus, if a and b are both correct and you do not put both of these or you include one o the other choices, you will receive 0 points). An increase in N An increase in the number...
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help plz
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