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 85 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
:D TYSM

AISCAMPING

  • Member
  • Posts: 347
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

A good example of polar molecules can be understood when trying to make a cake. If water and oil are required, they will not mix together. If you put them into a measuring cup, the oil will rise to the top while the water remains on the bottom.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

That politics was always a rough business is shown in this cartoon, which shows Lincoln, assisted by That politics was always a rough business is shown in this cartoon, which shows Lincoln, assisted by
Weak valve springs will produce a normal reading at idle, but as engine speed increases, the needle ... Weak valve springs will produce a normal reading at idle, but as engine speed increases, the needle ...
Students and Money Students and Money
Food vs Cash: Which Is More Effective for Alleviating Hunger? Food vs Cash: Which Is More Effective for Alleviating Hunger?
Crossing over in prophase I increases genetic variation Crossing over in prophase I increases genetic variation
Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ... Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ...
Video: Spinal Cord Injury Animation

For a complete list of videos, visit our video library