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Author Question: Consider the TVM equation: The future value is always greater than the present value, even if the ... (Read 74 times)

tsand2

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on: Jul 10, 2018
Consider the TVM equation: The future value is always greater than the present value, even if the interest rate is negative.
 
  Indicate whether the statement is true or false.

Question 2

Consider the TVM equation: A decrease in the time period will increase the future value, other things remaining equal.
 
  Indicate whether the statement is true or false.


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lou

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

Answer: FALSE
Explanation: The future value is less than the present value if the interest rate is negative.

Answer to Question 2

Answer: FALSE
Explanation: A decrease in the time period will DECREASE the future value, other things remaining equal.


tsand2

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

mjenn52

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

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