This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Amy has always planned to save enough money to pay cash for her first new car. If Amy increases the ... (Read 104 times)

biggirl4568

  • Hero Member
  • *****
  • Posts: 551
on: Jul 10, 2018
Amy has always planned to save enough money to pay cash for her first new car. If Amy increases the rate she earns on her savings, then she will have to save more money today to buy her car at the same date in the future.
 
  Indicate whether the statement is true or false.

Question 2

Consider the TVM equation: The greater the interest rate, other things remaining equal, the greater the present value.
 
  Indicate whether the statement is true or false.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

JCABRERA33

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: FALSE
Explanation: If Amy increases the rate she earns on her savings, then she can save LESS money today to buy her car in the future.

Answer to Question 2

Answer: FALSE
Explanation: The SMALLER the interest rate, other things remaining equal, the greater the present value.


biggirl4568

  • Member
  • Posts: 551
Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)

tandmlomax84

  • Member
  • Posts: 323
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Did you know?

Cucumber slices relieve headaches by tightening blood vessels, reducing blood flow to the area, and relieving pressure.

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

Species richness increases with island size. Species richness increases with island size.
Ripped Money Ripped Money
Cat Got Money Cat Got Money
The signal voltage from a throttle position increases as the throttle is opened because the wiper ... The signal voltage from a throttle position increases as the throttle is opened because the wiper ...
The averaging of an auditory evoked potential. Averaging increases the signal-to-noise ratio. The averaging of an auditory evoked potential. Averaging increases the signal-to-noise ratio.
Learn Canadian money grade 1 Learn Canadian money grade 1
Video: Smoking Cessation

For a complete list of videos, visit our video library