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

Author Question: Which of the following actions will INCREASE the present value of an investment? A) Decrease the ... (Read 58 times)

ETearle

  • Hero Member
  • *****
  • Posts: 580
on: Jul 10, 2018
Which of the following actions will INCREASE the present value of an investment?
 
  A) Decrease the interest rate.
  B) Decrease the future value.
  C) Increase the amount of time.
  D) All of the above will increase the present value.

Question 2

You have purchased a Treasury bond that will pay 10,000 to your newborn child in 15 years. If this bond is discounted at a rate of 3.875 per year, what is today's price (present value) for this bond?
 
  A) 8,417
  B) 8,500
  C) 5,654
  D) 10,000


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ebenov

  • Sr. Member
  • ****
  • Posts: 331
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: A
Explanation: A) PV =

Answer to Question 2

Answer: C
Explanation: C) PV = = = 5,654
MODE = END
INPUT 15 3.875 ? 0 -10,000
KEY N I/Y PV PMT FV
CPT 5,654


ETearle

  • Hero Member
  • *****
  • Posts: 580
Reply #2 on: Jul 10, 2018
Thank you


ebenov

  • Sr. Member
  • ****
  • Posts: 331
Reply #3 on: Jul 10, 2018
No problemo


« previous next »
 

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Actions of regulatory transcription factors and small effector molecules Actions of regulatory transcription factors and small effector molecules
Step 2 of gene cloning: The actions of a restriction enzyme and DNA ligase to produce a recombinant Step 2 of gene cloning: The actions of a restriction enzyme and DNA ligase to produce a recombinant
Gossip and ridicule increase the status insecurity of this time of life. Gossip and ridicule increase the status insecurity of this time of life.
Everyday situations sometimes present opportunities for children to build information processing ... Everyday situations sometimes present opportunities for children to build information processing ...
How to calculate present value using the compound interest formula (Question 2) How to calculate present value using the compound interest formula (Question 2)
Effect of an Increase in gA,2 on Productivity and Output Effect of an Increase in gA,2 on Productivity and Output
Video: Bone cells and tissues - tissue composition and cells

For a complete list of videos, visit our video library