What happens to a future value if you increase the rate r ? What happens to a
Question:
Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 62% (8 reviews)
The future value rises assuming its positive the present value falls Rate r is the interest one i...View the full answer
Answered By
Charles mwangi
I am a postgraduate in chemistry (Industrial chemistry with management),with writing experience for more than 3 years.I have specialized in content development,questions,term papers and assignments.Majoring in chemistry,information science,management,human resource management,accounting,business law,marketing,psychology,excl expert ,education and engineering.I have tutored in other different platforms where my DNA includes three key aspects i.e,quality papers,timely and free from any academic malpractices.I frequently engage clients in each and every step to ensure quality service delivery.This is to ensure sustainability of the tutoring aspects as well as the credibility of the platform.
4.30+
2+ Reviews
10+ Question Solved
Related Book For
Fundamentals of corporate finance
ISBN: 978-0078034633
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Question Posted:
Students also viewed these Corporate Finance questions
-
What happens to a present value as you increase the discount rate?
-
Compounding and interest Rates what happens to a future value if you increase the rates? What happens to a present value?
-
What happens to a conglomerate during metamorphism under directional pressures?
-
After attending a seminar on measuring customer profitability, Mason Ford decided to examine Olson Optics' customers to determine if the company truly knew how profitable its customers were. Olson...
-
A plate in plane stress is subjected to normal stresses (x and (y and shear stress Txy, as shown in the figure. At counterclockwise angles ( = 35 and ( = 75 from the x axis, the normal stress is 4800...
-
On December 28, 2021, the directors of Partridge Corporation, an accrual basis calendar year taxpayer, authorized a cash contribution of $10,000 to the American Cancer Association. The payment is...
-
Explain why the reference line in Figure 2.12 uses the first and third quartiles from the Unif $[0,1]$, and ordered sample. Data from Figure 2.12 2+ X (Sample Quantiles) N GO Unif[0,1] sample N(0,1)...
-
The percentage of Americans who have confidence in U.S. banks dropped to 23% in June 2010, which is far below the pre-recession level of 41% reported in June 2007 (gallup.com). a. What is the...
-
This is a research to investigate the FAA maintainability requirements for aviation systems. Begin by considering the following statement from the United States General Accounting Office Testimony,...
-
Each year forbes ranks the world's most valuable brands. A portion of the data for 82 of the brands in the 2013 forbes list is shown in Table 2.12 (forbes website, February, 2014). The data set...
-
Consider a project to supply Detroit with 25,000 tons of machine screws annually for automobile production. You will need an initial $3,600,000 investment in threading equipment to get the project...
-
Why would TMCC be willing to accept such a small amount today ($24,099) in exchange for a promise to repay about four times that amount ($100,000) in the future?
-
The 12-Mg jet airplane has a constant speed of 950 km/h when it is flying along a horizontal straight line. Air enters the intake scoops S at the rate of 50 m3/s. If the engine burns fuel at the rate...
-
What is the internal rate of return on an investment that costs $2,000 and returns $32 per month for the next 15 years? O The IRR cannot be calculated for this investment O 14.13 % 17,86% O 1.48%
-
12) Your firm is considering an investment that will cost $920,000 today. The investment will produce cash flows of $450,000 in year 1, $270,000 in years 2 through 4, and $200,000 in year 5. The...
-
how much will Samantha have in 10 years from now if she deposits the $15,000 that her grandfather gave her at 2.5% interest, compounded annually? a. 18,544.47 b.18,684.92 c. 19,000.00 d. 19 201.27
-
1.) Two inductors each have an inductance of 2H, the mutual inductance between them is M=0. Calculate the inductance if a) they are connected together correctly in parallel b) they are connected...
-
A conservative fund has an expected weekly return of 0 . 1 6 % and its weekly returns are expected to be normally distributed. What is the maximum standard deviation the fund could have in order for...
-
Supply acceptable names for the following: (a) [Ag(NH 3 ) 2 ]Cl (b) [Cu(H 2 O) 2 (NH 3 ) 4 ]SO 4 (c) PtCl 2 (en) (d) [CrBr(H 2 O) 5 ] 2+ (e) Rb[AgF 4 ] (f) Na 2 [Fe(CN) 5 NO].
-
Modify the counter from Exercise 5.44 such that the counter will either increment by 4 or load a new 32-bit value, D, on each clock edge, depending on a control signal Load. When Load = 1, the...
-
Suppose you estimate a regression and compute SST = 217.47 and SSR = 121.73. Use this information to calculate SSE, R 2 , and r.
-
Your firm has an average collection period of 32 days. Current practice is to factor all receivables immediately at a discount of 1.35 percent. What is the effective cost of borrowing in this case?...
-
1. Use the numbers given to complete the cash budget and short-term financial plan. 2. Rework the cash budget and short-term financial plan assuming Piepkorn changes to a minimum balance of $100,000....
-
Bird's Eye Treehouses, Inc., a Kentucky company, has determined that a majority of its customers are located in the Pennsylvania area. It therefore is considering using a lockbox system offered by a...
-
Describe the value chain analysis methods that a firm might utilize to identify strategies to enhance organizational capabilities.
-
Nurses are advocates for patients and must find a balance while delivering patient care. Discuss
-
The geriatric nurse cares for patients who are aging or suffering from conditions normally, Discuss?
Study smarter with the SolutionInn App