Question: These questions have to do with a chapter on the time value of money. The other prompt was concerning how to find the payment of
These questions have to do with a chapter on the time value of money. The other prompt was concerning how to find the payment of a future annuity.
What effect does increasing the required return have on the present value of a future amount? Why? What effect would a decrease in the interest rate have on the future value of a deposit? Why? What effect would an increase in holding period have on future value, ceteris paribus?
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