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Author Question: Which of the following actions will INCREASE the present value of an investment? A) Decrease the ... (Read 65 times)

ETearle

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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


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ebenov

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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

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Reply #2 on: Jul 10, 2018
Thank you


ebenov

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Reply #3 on: Jul 10, 2018
No problemo


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