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Author Question: 5,000 invested at an annual rate of 6 for 3 years has a smaller future value than 5,000 invested at ... (Read 336 times)

torybrooks

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on: Jul 10, 2018
5,000 invested at an annual rate of 6 for 3 years has a smaller future value than 5,000 invested at an annual rate of 3 for 6 years.
 
  Indicate whether the statement is true or false.

Question 2

In terms of risk, preferred stock is safer than common stock because it has a prior claim on assets
  and income.
 
  Indicate whether the statement is true or false
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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apple

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: TRUE
Explanation: 5,000  (1.06)3 = 5,955.08, but 5,000  (1.03)6 = 5,970.26

Answer to Question 2

TRUE


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