Question: You plan on saving $100 every month for ten years. Select all the true statements. Question options: If you double the size of the payments,
You plan on saving $100 every month for ten years. Select all the true statements.
Question options:
|
|
If you double the size of the payments, while holding everything else constant, you will end up with exactly twice the future value
|
|
|
If the interest rate is greater than 2% and you double the time (and the number of payments), you will end up with exactly twice the future value
|
|
|
This is an example of uneven cash flow
|
|
|
This is an example of a lump sum
|
|
|
If you were doing this problem with a financial calculator, and you were trying to compute the future value, your payments and the computed future value would have opposite signs
|
|
|
If you want to accrue more money at the end of the investment period, holding everything else constant, you need to start saving earlier.
|
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
