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 102 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
Great answer, keep it coming :)

Animal_Goddess

  • Member
  • Posts: 339
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Primary production increases with an increase in total phosphorus concentration. Primary production increases with an increase in total phosphorus concentration.
Although average brain size increases gradually though time in H. erectus, individuals with small br Although average brain size increases gradually though time in H. erectus, individuals with small br
Functional MRI Scans These scans of human brains show localized average increases in neural activity Functional MRI Scans These scans of human brains show localized average increases in neural activity
Time value money Time value money
Beak size in finches during dry years increases because of strong selection Beak size in finches during dry years increases because of strong selection
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: Fertilization and Development

For a complete list of videos, visit our video library