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 71 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
Wow, this really help

Liddy

  • Member
  • Posts: 342
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

The average older adult in the United States takes five prescription drugs per day. Half of these drugs contain a sedative. Alcohol should therefore be avoided by most senior citizens because of the dangerous interactions between alcohol and sedatives.

Exercise increases the heart rate. Exercise increases the heart rate.
Cat Got Money Cat Got Money
Adding additional amounts of ethyl alcohol (ethanol) increases the frequency reading. Adding additional amounts of ethyl alcohol (ethanol) increases the frequency reading.
Graph showing how the boiling point of the coolant increases as the percentage of antifreeze in ... Graph showing how the boiling point of the coolant increases as the percentage of antifreeze in ...
Mechanism of action of anti-parkinson drugs. (a) Levodopa therapy increases dopamine production; (b) ... Mechanism of action of anti-parkinson drugs. (a) Levodopa therapy increases dopamine production; (b) ...
What's Your BMI? As your BMI increases, you are more likely to be overweight or obese What's Your BMI? As your BMI increases, you are more likely to be overweight or obese
Video: Hydrogen bonds vs. Ionic bond

For a complete list of videos, visit our video library