a) True b) False highe 19. What is the Present Value of a stream of quarterly cash flows of $55m lasting for ten years? The payments are made in each successive quarter. Assume a nominal annual discount rate of 7.25% a) $1,214.68m b) $1,555.24m c) $1,782.73m d) $963.44m 20. A deposit placed in a savings account earning 8% a year will double in value in years? a) 5 years b) 6 years c) 17 years

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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18. Irrespective of other variables a higher interest rate on a savings account will
always result in a higher Future Value?
a) True
b) False
19. What is the Present Value of a stream of quarterly cash flows of $55m lasting for
ten years? The payments are made in each successive quarter. Assume a nominal
annual discount rate of 7.25%
a) $1,214.68m
b) $1,555.24m
c) $1,782.73m
d) $963.44m
20. A deposit placed in a savings account earning 8% a year will double in value in
years?
a) 5 years
b) 6 years
c) 17 years
d) 9 years
Transcribed Image Text:18. Irrespective of other variables a higher interest rate on a savings account will always result in a higher Future Value? a) True b) False 19. What is the Present Value of a stream of quarterly cash flows of $55m lasting for ten years? The payments are made in each successive quarter. Assume a nominal annual discount rate of 7.25% a) $1,214.68m b) $1,555.24m c) $1,782.73m d) $963.44m 20. A deposit placed in a savings account earning 8% a year will double in value in years? a) 5 years b) 6 years c) 17 years d) 9 years
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