Question: Question 1 7 ( 1 point ) Present value is higher when the future value of the payment is lower, the time until payment is

Question 17(1 point)
Present value is higher when the future value of the payment is
lower, the time until payment is shorter, and the interest rate is higher.
higher, the time until payment is shorter, and the interest rate is lower.
higher, the time until payment is longer, and the interest rate is lower.
lower, the time until payment is shorter, and the interest rate is higher.
Question 17(1 point) Present value is higher when the future value

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:

Question 1 (Mandatory) (1 point) Present value of a perpetuity will never be lower than present value of an annuity with similar payments and interest rate. True False Question 2 (Mandatory) (1...

Q:

Answer these four multiple choice questions: 1 . The most important characteristic of money is: a . Store of value b . Backed by gold c . Unit of value d . Means of payment 2 . Present value is...

Q:

QUESTION 1 If the net present value (NPV) of a project is positive: A.The project's discounted payback period is longer than the useful life of the project. B.The internal rate of return is lower...

Q:

What is the relationship between Present Value and Future Value? A future value equals a present value plus the interest that can be earned by having ownership of the money; it is the amount that the...

Q:

Present Value Discounting converts the value of future dollars into today's dollars through the interest rate. The present value (V) of a payment received one year from now is: * Def: V. = Payement 1...

Q:

2. Future value The principal of the time value of money is probably the single most important concept in financial management. One of the most frequently encountered applications involves the...

Q:

2.What is the present value of $42,735 to be received exactly 39 years from today if the interest rate is 12% p.a.? 1.(Round Your answer to TWO decimal places) 3.What is the present value of annuity...

Q:

am having a hard time plugging these into excel- our professor wants us to USE excel to grab the answer- the excel sheet i have given is what they prvide us and we are suppose to plug the #'s in to...

Q:

3. Future value Aa Aa The principal of the time value of money is probably the singla most important concept in financial management. One of the most frequently encountered applications involves the...

Q:

The principal of the time value of money is probably the single most important concept in financial management. One of the most frequently encountered applications involves the calculation of a...

Q:

You are a bank loan officer contemplating what terms to offer on a potential loan. The borrower is requesting a loan amount of $225,000, and a term of 30-years. The current market rate on such loans...

Q:

Equation 22-33 contains terms (A, B, and C) describing three band-broadening mechanisms. (a) Which term is 0 for an open tubular column? Why? (b) Express the value of B in terms of measurable...

Q:

Which of the following is a flexible type of business entity that offers its owners many advantages, including easy formation, fextic operation, limited legal liability of the owners, and pass -...

Q:

A company issues 1,050 shares of its common stock for $33,600 cash. Prepare journal entries to record this event under each of the following separate situations.