This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following actions will INCREASE the present value of an investment? A) Decrease the ... (Read 15 times)

ETearle

  • Hero Member
  • *****
  • Posts: 580
on: Jul 10, 2018
Which of the following actions will INCREASE the present value of an investment?
 
  A) Decrease the interest rate.
  B) Decrease the future value.
  C) Increase the amount of time.
  D) All of the above will increase the present value.

Question 2

You have purchased a Treasury bond that will pay 10,000 to your newborn child in 15 years. If this bond is discounted at a rate of 3.875 per year, what is today's price (present value) for this bond?
 
  A) 8,417
  B) 8,500
  C) 5,654
  D) 10,000


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ebenov

  • Sr. Member
  • ****
  • Posts: 331
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: A
Explanation: A) PV =

Answer to Question 2

Answer: C
Explanation: C) PV = = = 5,654
MODE = END
INPUT 15 3.875 ? 0 -10,000
KEY N I/Y PV PMT FV
CPT 5,654


ETearle

  • Hero Member
  • *****
  • Posts: 580
Reply #2 on: Jul 10, 2018
Thank you


ebenov

  • Sr. Member
  • ****
  • Posts: 331
Reply #3 on: Jul 10, 2018
No problemo


« previous next »
 

Did you know?

More than 30% of American adults, and about 12% of children utilize health care approaches that were developed outside of conventional medicine.

Did you know?

No drugs are available to relieve parathyroid disease. Parathyroid disease is caused by a parathyroid tumor, and it needs to be removed by surgery.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Did you know?

Medications that are definitely not safe to take when breastfeeding include radioactive drugs, antimetabolites, some cancer (chemotherapy) agents, bromocriptine, ergotamine, methotrexate, and cyclosporine.

Browning and Gunning demonstrated that placental transfer tissues increase plant reproductive succes Browning and Gunning demonstrated that placental transfer tissues increase plant reproductive succes
Testing the effects of long-term fertilizing on inter-actions between mycorrhizal fungi and plants o Testing the effects of long-term fertilizing on inter-actions between mycorrhizal fungi and plants o
Analogy for How Magnetic Field Strengths Increase Analogy for How Magnetic Field Strengths Increase
An orange-red biohazard symbol indicates that bloodborne pathogens may be present, and items should ... An orange-red biohazard symbol indicates that bloodborne pathogens may be present, and items should ...
Major Muscles: Origins, Insertions, and Actions Major Muscles: Origins, Insertions, and Actions
How high a hill would a 75-kg hiker have to climb to increase her gravitational potential ... How high a hill would a 75-kg hiker have to climb to increase her gravitational potential ...
Video: Import of Dietary Glucose from Intestines to Bloodstream

For a complete list of videos, visit our video library