Business, 08.03.2021 19:40 kinderc9330

Present and future values for different interest rates Find the following values. Compounding/discounting occurs annually. Round your answers to the nearest cent.
An initial $700 compounded for 10 years at 8%.$
An initial $700 compounded for 10 years at 16%.$
The present value of $700 due in 10 year at a discount rate of 8%.$
The present value of $2,800 due in 10 years at 16%.$
The present value of $2,800 due in 10 years at 8%$
Define present value.
The present value is the value today of a sum of money to be received in the future and in general is less than the future value.
The present value is the value today of a sum of money to be received in the future and in general is greater than the future value.
The present value is the value today of a sum of money to be received in the future and in general is equal to the future value.
The present value is the value in the future of a sum of money to be received today and in general is less than the future value.
The present value is the value in the future of a sum of money to be received today and in general is greater than the future value.
-Select-VVItem 6
How are present values affected by interest rates?
-Select-Assuming positive interest rates, the present value will increase as the interest rate increases. Assuming positive interest rates, the present value will decrease as the interest rate increases. Assuming positive interest rates, the present value will decrease as the interest rate decreases. Assuming positive interest rates, the present value will not change as the interest rate increases. Assuming positive interest rates, the present value will not change as the interest rate decreases.

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 18:00

Employers hiring for entry-level positions in hospitality and tourism expect workers to

Answers: 3

Answer

Business, 22.06.2019 05:40

Grant, inc., acquired 30% of south co.’s voting stock for $200,000 on january 2, year 1, and did not elect the fair value option. the price equaled the carrying amount and the fair value of the interest purchased in south’s net assets. grant’s 30% interest in south gave grant the ability to exercise significant influence over south’s operating and financial policies. during year 1, south earned $80,000 and paid dividends of $50,000. south reported earnings of $100,000 for the 6 months ended june 30, year 2, and $200,000 for the year ended december 31, year 2. on july 1, year 2, grant sold half of its stock in south for $150,000 cash. south paid dividends of $60,000 on october 1, year 2. before income taxes, what amount should grant include in its year 1 income statement as a result of the investment?

Answers: 1

Answer

Business, 22.06.2019 07:30

Which of the following best describes why you need to establish goals for your program?

Answers: 3

Answer

Business, 22.06.2019 11:00

On analyzing her company’s goods transport route, simone found that they could reduce transport costs by a quarter if they merged different transport routes. what role (job) does simone play at her company? simone is at her company.

Answers: 1

Answer

You know the right answer?

Present and future values for different interest rates Find the following values. Compounding/disco...

Questions