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 66 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?

Lower drug doses for elderly patients should be used first, with titrations of the dose as tolerated to prevent unwanted drug-related pharmacodynamic effects.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Water potentials decrease (become more negative) as one moves from soil to plant to atmosphere Water potentials decrease (become more negative) as one moves from soil to plant to atmosphere
The skeleton of a dwarf elephant from the island of Crete. Dwarf elephants were present on some Medi The skeleton of a dwarf elephant from the island of Crete. Dwarf elephants were present on some Medi
The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha
A medical assistant should present a neat appearance and make it a habit to wear a smile. A medical assistant should present a neat appearance and make it a habit to wear a smile.
How to calculate present value (Question 4) How to calculate present value (Question 4)
Excessive video gaming decrease social and physical development in a child Excessive video gaming decrease social and physical development in a child
Video: Hormonal regulation of pregnancy - week 1

For a complete list of videos, visit our video library