Question: If we keep all the other factors unchanged, future value does not change as the interest rate increases. present value decreases as the interest rate

If we keep all the other factors unchanged,
future value does not change as the interest rate increases.
present value decreases as the interest rate increases.
future value decreases as the interest rate increases.
future value increases as the number of periods decreases.
If we keep all the other factors unchanged, future value does

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 Finance Questions!

Q:

This is a new manufacturing corporation that issued $50000 common stock for cash on the first day. All overhead expenses are paid immediately by cash. To make it easy, there are no other operating...

Q:

11. The ________ measures the dispersion around the expected value. a. chi square b. standard deviation c. mean d. coefficient of variation 12. Which of the following is false? a. Pre-emptive rights...

Q:

What happens to the present value and future value of an annuity as the interest rate increases? a.The present value increases and the future value decreases as the interest rate increases. b.The...

Q:

both questions 24 What happens to the present value and future value of an annuity as the interest rate increases? a. The present value increases and the future value decreases as the interest rate...

Q:

The balance sheet:___The future value of a dollar _____ as the interest rate increases and_______ the farther in the future and initial deposit is to be received. 5 pts The balance sheet: Is for a...

Q:

the 7) The future value of a dollar as the interest rate increases and further into the future the initial investment is made. A) decreases: decreases B) decreases increases C) increases increases D)...

Q:

The present value of a lump sum future amount: decreases as the time period decreases. is inversely related to the future value. is directly related to the interest rate. increases as the interest...

Q:

Please can answer all these questions.. I appreciate your help Which of the following statement is FALSE when a company employs the record sales related transaction? a. "sales discount "is received...

Q:

question 1-5 help please Question 1 (1 point) select all true statements about the time value of money of lump sums: A lump sum problem is one with two cash flows: a present value and a future value...

Q:

1. If a firm wants to grow at a rate faster than its sustainable growth rate, it could _____. I. issue new equity shares II. increase its debt ratio III. increase its dividend payout ratio IV. reduce...

Q:

1. If a firm wants to grow at a rate faster than its sustainable growth rate, it could _____. I. issue new equity shares II. increase its debt ratio III. increase its dividend payout ratio IV. reduce...

Q:

Autos arrive at a toll plaza located at the entrance to a bridge at a rate of 50 per minute during the 5:00-to-6:00 p.m. hour. If an auto has just arrived, a. what is the probability that the next...

Q:

The trial balance extracted from the books of Kami Limited as at 31 December 2019 was as follows: The following additional information is available: (i) Inventory as at 31 December 2019 was valued at...

Q:

The XYZ Company has an attached balcony on the top floor of their headquarters. During a summer storm, a lightning bolt strikes the metal railing of the balcony, splitting the balcony into two. XYZ...

Q:

2023 1040 form 1.Phillip and Claire are married and file a joint return. Phillip is self-employed as a real estate agent, and Claire is a flight attendant. Phillip and Claire have three dependent...