Question: can you answer these questions please 3. Future value 0 x The principal of the time value of money is probably the single most important

can you answer these questions please
can you answer these questions please 3. Future value 0 x The
principal of the time value of money is probably the single most
important concept in financial management. One of the most frequently encountered polications
involves the calculation of a future value. This process requires knowledge of

3. Future value 0 x The principal of the time value of money is probably the single most important concept in financial management. One of the most frequently encountered polications involves the calculation of a future value. This process requires knowledge of the values of three of The process for converting present valses into future values is called four time-value-of-money variables. Which of the following is not one of these variables The inflation rate Indicating the change in average prices The duration of the investment (N) The present value (PU) of the amount invested The interest rate (T) that could be earned by invested funds All other things being equat. the numerical difference between a present and a future value corresponds to the amount of interest earned during the deposit or investment period. Each line on the following graph corresponds to an interest rate: 0%, 10%, o 20%. Identity the interest rate that corresponds with each line VALUEID 55F Clear A 541 PM 9/25/2021 O E me value of Money a con VALUE 0 x C TIME Years Line The C Investments and loans base their interest calculations on one of two possible methods the Interest and the interest method Both methods apply three variables the mount of principal, the interest rate, and the investment or depot period to the amount deposited or invested in order to compute the amodet of interes. However the two methods diefe in the ratio between the variables SRPM C SSF Clear 0 X ools Assume that the variables, N. and PV represent the interest rate metode period, and of the mounted or invested, respectively. Which equation best represents the cloution of a loturva (V Compound interest? AZ FV-PV (PVXIXN) FV-PVX (1+1)* OFV-PV (1) Simple interest? FVP (PVTXN FV-PV/(PxIxN tory OFV-PIXN Identify whether the following statements about the simple and compound interest methods true or tale True False Statement All other variables held constant investments paving simple interest have to parsignano hihet rests to conta same amount of interest as an account aming compound interest Everything as held constant an account that can compound interest growthan on the decat 32 PM IS LERUMO MINUTA Seard this course Ch 05: Assignment - Time Value of Money 0 x same amount of Interest as an account earning compound interest Everything else held constant, an account that can compound interest will grow more quickly than otherwiec account that a simple interest All other factors being equal, both the simple interest and the compound interest methods wil care interest by the end of the first year AZ Alek is willing to invest $30,000 for eight years, and an economically rational levesteit. He has sented three bevestment and cu that vary in their method of calotting interest and in the annual interest rate offered. Since he can only main content during the Investment period, complete the following table and indicate whether Alok should invest in each of the Note: When calculating each investment's future value assume that it interest is earned seal. The final de stad be mounted to the whole dollar Investment Expected Future Value Make this investment? Interest Rate and Method simple interest 39 Cound interest 5 compound interest

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