hich 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 of the other choices , you will receive points . A decrease in N An decrease in the number of compounding periods per year (for example , the compounding changes from four times per year to one time per year ) . A decrease in the lump sum amount . A decrease in the interest rate An increase in N An increase in the lump sum amount . An increase in the number of compounding periods per year ( for example , the compounding changes from one time per year to 12 times per year ) . An increase in the intere

hich 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 of the other choices , you will receive points . A decrease in N An decrease in the number of compounding periods per year (for example , the compounding changes from four times per year to one time per year ) . A decrease in the lump sum amount . A decrease in the interest rate An increase in N An increase in the lump sum amount . An increase in the number of compounding periods per year ( for example , the compounding changes from one time per year to 12 times per year ) . An increase in the intere

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 12MC: (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest...

See similar textbooks

Similar questions

If you have the annual worth of an alternative that has a 5-year life, you can obtain its perpetual annual worth by:a. doing no calculations, since perpetual annual worth equals the annual worth.b. multiplying the annual worth by (A/P,i,5).c. dividing the annual worth by i.d. multiplying the annual worth by i.
For each of the following situations involving single amounts, solve for the unknown. Assume that interest is compounded annually. (i= interest rate, and n = number of years) Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1. 2. 3. 4. 5. Present Value Future Value 80,000 94,000 50,000 200,000 $ $ $ $ $ 31,841 $ 15,762 $ 84,482 $ 13,291 i 7% 8% 9% n 9 16 10 15 1
If you have the annual worth of an alternative with a 5-year life, you can calculate its perpetual annual worth by: (a) no calculation needed. The perpetual annual worth is equal to the annual worth (b) multiplying the annual worth by (A∕P,i,5) (c) dividing the annual worth by i (d) multiplying the annual worth by i
Computing Future and Present Values When answering the following questions, round your answer to the nearest whole number Do not use a negative sign with your answer. What is the future value of equal payments of $20,000 made at the beginning of each of 5 periods, compounded at 7%? Answer 5. What is the present value of equal payments of $16,000 made at the end of 8 periods, compounded at 6%? The payments are deferred for 3 years. Answer
For each of the following situations involving single amounts, solve for the unknown. Assume that interest is compounded annually. (/= interest rate, and n=number of years) Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) 1. 2 3. 4. 5. Present Value Future Value 1 $ 36,600 $ 62,000 $ 28,644 $ 76,000 $ 11,758 $ 45,500 68.822 $ 155,000 13,796 $ $ 5% 7% 8% n 20 12 10
hello for this question may someone let me know how to correctly plug in the formula to get a final answer of (11.90) as stated in the picture? (11.90) 1. question states: The doubling function D(r)=ln2ln(1+r) gives the number of years required to double your money when it is invested at interest rate r (expressed as a decimal), compounded annually. How long does it take to double your money at each of the following rates?
Assume that you will receive $2500 at the end of 6 years and want to know the present value (PV) of that future sum. Assuming a positive interest rate (required rate of return), which of the following is a possible number for the present value of the $2500? Even without knowing the interest rate, it is possible to answer this question. O A. $2742.53 B. $2632.45 O C. $1967.25 OD. $2572.50 O E. None of the above is a possible number.
You will deposit $30,000 per year into an account beginning today that pays 13 percent per year. How long (in years) would it take for you want have a total of $1,000,000 at retirement? m Nper (or N) =n*m Rate (or I/Y)=i/m PV PMT FV Must identify variables and use excel
You are considering an investment with the following characteristics. The investment will cost you $551 today, but will pay you annual benefits of $107 for 11 years starting at the end of the first year. The relevant opportunity cost of capital is 9%. What is the NPV of this investment? Round your answer to two decimals. Enter negative values with a - sign. Don't enter the $-symbol as part of your answer.
If the rate of interest that your investment can earn on a 2-year investment is zero, which of the following statements is NOT CORRECT? * a. All of the statements are correct. b. The payment for the use of your money for two years is zero. c. The future value of your investment is higher than your present value at the end of the investment period. d. You will receive the same amount you invested at the beginning of the 2-year period at the conclusion or maturity of the investment.
Suppose initially that two assets, A and B, will each make a single guaranteed payment of $400 in 1 year. But asset A has a current price of $280 while asset B has a current price of $320. Instructions: Round your answers to 2 decimal places. a. What are the rates of return of assets A and B at their current prices? Return on assetA =| |percent Return on asset B = percent Given these rates of return, which asset should investors buy and which asset should they sell? Buy asset (Click to solect) v and sell asset (Click to select) b. Assume that arbitrage continues until A and B have the same expected rate of return. When arbitrage ends, will A and B have the same price? (Click to select) Next, consider another pair of assets, C and D. Asset C will make a single payment of $600 in 1 year, while D will make a single payment of $800 in 1 year. Assume that the current price of C is $440 and that the current price of D is $680. c. What are the rates of return of assets C and D at their…
You are explaining time value of money factors to your friend. Which factor would you explain as being larger? Group of answer choices A. The future value of $1 for 12 periods at 6% is larger. B. The present value of $1 for 12 periods at 6% is larger. C. Neither one is larger because they are equal. D. There is not enough information given to answer this question.