1. If you decrease the interest rate for an investment by 10%, will the future value decrease...

Question:

1. If you decrease the interest rate for an investment by 10%, will the decrease by 10%?
2. If interest is compounded semiannually, will the effective rate be higher or lower than the nominal rate?
3. If you increase the number of months in which to pay off a loan, will you increase or decrease the monthly payment? The total amount of interest paid? Give an example to justify your answers.
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...