Formula:
Future value = Present value *(1 + Rate)^number of years
Future value is directly proportional to present value, interest rate, number of years.
Answer:
The future value value is directly related to the interest rate.
Question 22 4 pts Which one of the following is a correct statement, all else held...
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...
Which one of the following statements correctly defines a time value of money relationship? Multiple Choice 2.5 points eBook • Time and future values are inversely related, all else held constant. Print References O Interest rates and time are positively related, all else held constant. O An increase in a positive discount rate increases the present value. O An increase in time increases the future value given a zero rate of interest. O Time and present value are inversely related,...
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...
A decrease in which one of the following will increase the cash cycle, all else held constant? a. Payables turnover b. Days sales in inventory c. Operating cycle d. Inventory turnover rate e. Accounts receivable period
Question 2 Which of the following will increase the present value of an annuity, all else held constant? 1. Increase in the number of payments II. Increase in the interest rate III. Decrease in the interest rate IV. Decrease in the payment amount o I and III only oland Il only o 1, 11, and IV only o 1. III. and IV only o I and IV only
please answer both questions Question 10 4 pts Which one of the following statements describes an annuity? a) An annual repayment of a loan. b) A series of uniform amounts over a period of time. c) Alump sum at the end of a period. d) Future worth of a present amount. Ob) A series of uniform amounts over a period of time. D Question 11 4 pts A typical format used in presenting a net cash flow statement may include:...
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
7. Which of the following statement is correct regarding dividends? A) All else equal, the market value of a stock will tend to decrease by roughly the aftertax value of the dividend on the payment date. B) Any stock dividend is considered to be a one-time event that will not be repeated? C) Dividends tend to fluctuate significantly from quarter to quarter. D) A direct result of a two-for-one stock split is a 50 percent decrease in the value per...
All else held constant, the present value of a bond increases when the: coupon rate decreases. yield to maturity decreases. current yield increases. time to maturity of a premium bond decreases. time to maturity of a zero coupon bond increases.
All else held constant, which one of these is most apt to decrease the average cost of capital (WACC) of a leveraged firm? a) An increase in a market's average return b) A decrease in the tax rate c) An increase in the treasure rate when the firm's equity beta > 1 d) An increase in the firm's risk and equity beta