Question: Future Value and Present Value, both are based on : (a) Number of Time periods (b) Interest Rate (c) Both (a) and (b) (d) None

Future Value and Present Value, both are based on :

(a) Number of Time periods

(b) Interest Rate

(c) Both

(a) and (b)

(d) None of the above.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Intermediate Financial Management Questions!

Q:

The cash flow that is available for distribution to a corporation's creditors and stockholders is called the: Multiple Choice cash flow from assets. net working capital. cash flow to stockholders....

Q:

Case Analysis 1. Compute the yield to maturity of Land'o'Toys' bonds before the purchase announcement and use it to determine the likely current bond rating. (Compare YTM to the table on p. 269)....

Q:

Which one of the following actions will increase the present value of an amount to be received sometime in the future? Matiple Choice Decrease in the future value Decrease in both the future value...

Q:

What is the following formula derived to calculate? [FV/PV] to the power of (1/n) - 1 = ? The future value of a lump sum with non-annual compounding The number of time periods The future value of an...

Q:

Which one of the following actions will increase the present value of an amount to be received sometime in the future? Increase in the time until the amount is received Increase in the discount rate...

Q:

What does the process of accumulation involve? determining present value determining future value determining future value or present value determining the number of time periods

Q:

Which of the following formulas is the correct way to express a future value two years into the future based on a present value and an interest rate? FV2 = (a) (b) (0) (d) PV (1 + k)+ PV (1 + k) (k)...

Q:

b ) How might they be mathematically related when applied to interest - type investments where your money is invested at the beginning of the year? FV = PV x ( 1 + i ) n where; Future Value ( FV ) =...

Q:

Describe what happens to future value when a. The interest rate increases b. The number of compounding periods increases C. The amount of time over which something is invested decreases 2. Describe...

Q:

Time Value of Money - Single Sums Inputs Present Value Nominal Rate of Return Number of Years Number of Periods per year Output Future Value Inputs Present Value Future Value Nominal Rate of Return...

Q:

Parent Ltd owns 100% of the issued capital of Sub Ltd. Both companies use the perpetual method of accounting for inventory. Assume the tax rate is 30% Note: You must show your workings for any...

Q:

Heres a regression of monthly revenue of Wal-Mart Corp, relating that revenue to the Total U.S. Retail Sales, the Personal Consumption Index, and the Consumer Price Index. Dependent variable is:...

Q:

Question 1 1 0 pts ( Type B . 1 ) A loan was made 1 6 years ago for $ 1 4 0 , 0 0 0 at 1 0 . 5 percent for a 3 0 - year term. Rates are currently 8 percent. What is the market value of the loan? (...

Q:

The probabilities that a patient will have 0, 1, 2, or 3 medical tests performed on entering a hospital are 6 / 5, 5/15, 3/15 and 1/15 respectively.