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Author Question: Consider the TVM equation: Present values and interest rates are inversely related. Indicate ... (Read 84 times)

tfester

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on: Jul 10, 2018
Consider the TVM equation: Present values and interest rates are inversely related.
 
  Indicate whether the statement is true or false.

Question 2

Given an interest rate of 0, the present value of 1,500 to be received 5 years in the future is less than 1,500.
 
  Indicate whether the statement is true or false.


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steff9894

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

Answer: TRUE

Answer to Question 2

Answer: FALSE
Explanation: PV = = = 1,500.


tfester

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Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)

strudel15

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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