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Author Question: Amy has always planned to save enough money to pay cash for her first new car. If Amy increases the ... (Read 117 times)

biggirl4568

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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.


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JCABRERA33

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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

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Reply 2 on: Jul 10, 2018
Gracias!

alexanderhamilton

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Reply 3 on: Yesterday
Excellent

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