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Author Question: At an inflation rate of 9 percent, the purchasing power of 1 would be cut in half in 8.04 years. How ... (Read 85 times)

jace

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on: Jul 10, 2018
At an inflation rate of 9 percent, the purchasing power of 1 would be cut in half in 8.04 years. How long to the nearest year would it take the purchasing power of 1 to be cut in half if the inflation rate were only 4 percent?

Question 2

Given a positive interest rate and a positive cash flow, an ordinary annuity always has a greater present value than an annuity due of the same size and number of cash flows.
 
  Indicate whether the statement is true or false.


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akpaschal

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

Thanks for your help Worked like a charm.

Answer to Question 2

Answer: FALSE
Explanation: The annuity due is always greater.


jace

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Reply 2 on: Jul 10, 2018
:D TYSM

flexer1n1

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Reply 3 on: Yesterday
Excellent

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