Future Values (ANSWER ALL PLEASE)

1st fill in the blank : discounting or compounding

For the graph Line A : 17%, 0%, or 9% Line B : 17%, 9%, or 0% Line C : 17%, 0%, or 9% Next set of Fill in the Blanks complex or simple uncomplicated or compound The rest are multiple choice and true and false. Please answer all. Thank you

2. Future value Aa Aa The principal of the time value D money is prohably the sngle mast important concept in financial management. rne of the most frequendy encourtered applications irvolves the calaulation of a future valuc. This process requires The process far cunverting present values int futue valuees is calle knouledge of the valucs of threc of four time valuc of moncy variab cs. Which of the following is not ana of thasc varlables? O The interest rate (that could be eened by invested funds lhe presert velue (FV} of th arnaurt investeni O The durotion o the investment (n) O The inflation rata indicating the change in avarage prices Al ather things being equal, the numercal difTerence between a present and a future value corresponds he amount afirterest eamed during the d csit or nvestment penod. Fa line on the follo ng graph corresponds to an interest rate: os, g%, or 17%. Identify the interest rate that corresponds with each line. VALUE IDalla 012345 7B 10 TIMEIYuur interest and Investments and loars base their interest calculations on ane of two pcssible methads: the the rate, and the investmert or ceposit pcriod to the amount ceposited or invested in orcer to compute the mount of Interest. However, the two methods cirfer n thelr relationshlp batween the varlables. ir terest methods. Bath methods apply threvarirles;-the amnuntat principal, the interst Assume that the varaties , n, arn PV represent the rterest rate, nvestment Drdeposit penn, arni present value of the amount depasited or investod, respotively. Which cquatian test represents the calaulation of a future valuc (FV) using: Compound interest? Simple irterest? Identify whether the folkwing statements about the simple and cund interest methrds are true o false. TrueFalse Everything else held constant, an account that eams compound Interest will grow more quickly than an othervise identical account thet eams s mple interest. All other tactors baing equal, beth the simple interest and the compound interest methdsO not generate the amunt ofearmed interest y the end af the first yeer Alter the end of the seoond year and all other factors remaining equal, a future value baserd on compiund interest will excreed future value tassel nn sirnle interest. Fedor is willing o nvest $30,000 for eight years, and is an economically rational investor. He nas identified three investmiet aternatives (A, H, and that vary in their method af calclating interest and in the annual interest rate affered. Since ha can only mokc onc investment during the cight year investment period, complcte the following table and ndicate whether Fedor should invest in each of the Inwestments. Note: Whan calculating each inwestment's futura value, assu me that al interest is earned annually. The final value snould be rounded to the nearest whole dollar Make this Investment Interest Rate and Method Expected Future Val Yes No y%, simple in terest 4% compound interest 6% compound interest