Question: is this correct? Which of the following will decrease the future value of a lump sum (for example, the FV of $500 to be received
Which of the following will decrease the future value of a lump sum (for example, the FV of $500 to be received N years from today). (Check all of the answer choices that are correct. This is an all or nothing question. Thus, if a and b are both correct and you do not put both of these or you include one of the other choices, you will receive 0 points). An increase in N An increase in the lump sum amount. A decrease in the lump sum amount. A decrease in the interest rate An increase in the number of compounding periods per year (for example, the compounding changes from one time per year to 12 times per year). An increase in the interest rate A decrease in N An decrease in the number of compounding periods per year (for example, the compounding changes from four times per year to one time per year)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
