All else equal, the future value of a lump-sum amount invested today will increase if the * investment time period is shortened. Two or more of the above answers are correct. interest rate that is earned is lowered. number of compounding periods is increased. amount initially invested is lowered.
Q: a) The amount an investment is worth after one or more time periods is referred to as…
A: a) Future Value b) Discounting c) Discounted cash flow valuation d) Simple interest
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A: A lump sum investment is depositing the entire amount at one go.
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A: The correct answer is E. Decrease the future value.
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A: Formulas: Future value = Present value *(1+rate)^years
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Q: amount
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- 2. In a scenario where in there is a higher number of compounding periods within a given year, this will result to: (1) a higher future value of a lump sum investment at Time 0 (2) a lower future value of a lump sum investment at Time 0 (3) a greater present value of a given lump sum to be received at some future date. (4) a lower present value of a given lump sum to be received at some future date. (5) no discrepancy on future value given a lower number of periods (6) no discrepancy on present value given a lower number of periods (7) computation for present value and future value will remain the same given there is a lower number of periods. (8) there will be an effect as to computation for present value and future value specifically in the number of periods and rates being used.Need answer ASAP... Single-payment compound amount factor is the conversion factor that, when multiplied by F, yields the present amount P of future amount F after n years at interest rate i. a. The above statement is factual b. The above statement is misleading c. The above statement is incomplete d. All of the aboveThe process of reinvesting interest earned to generate additional earnings over time is ________. A. compounding B. discounting C. annuity D. lump-sum
- . Match each sentence to the correct concept. a) The amount an investment is worth after one or more time periods is referred to as_______________b) The process of finding the present value of some future amount is called_________________.c) Calculating the present value of a future cash flow to determine its value today isknown as _________________.d) Interest earned on the principal and maybe for a number of years may be called______________e) ___________ is the process of accumulating interest in an investment over time toearn more interest.f) The interest earned on both the initial principal and the interest reinvested fromprior periods is referred to as ______ _______.Match each sentence to the correct concept. a) The amount an investment is worth after one or more time periods is referred to as_______________b) The process of finding the present value of some future amount is called_________________.c) Calculating the present value of a future cash flow to determine its value today isknown as _________________.d) Interest earned on the principal and may be for a number of years may be called______________e) ___________ is the process of accumulating interest in an investment over time toearn more interest.f) The interest earned on both the initial principal and the interest reinvested from prior periods is referred to as ______ _______.1. Single-payment compound amount factor is the conversion factor that, when multiplied by F, yields the present amount P of future amount F after n years at interest rate i. a. The above statement is factual b. The above statement is misleading c. The above statement is incomplete d. All of the above 2. The annual worth can be calculated from the alternative’s: a. either ( a) or ( b) b. future worth by multiplying by ( F/A, i, n) c. all of the above d. present worth by multiplying by ( A/P, i, n) 3. The basic economic problems of the society includes the ___. a. all of the above b. problem of choice c. problem of allocation of resources d. problem of scarcity of resources
- If you are compounding a cash flow, you are ________. A: Finding a future value B: Finding a present value C: Multiplying a future cash flow by the number of years it is from the present D: None of the abovMatch each sentence to the correct concept. a) the amount an investment is worth after one or more time periods is referred to as............................ b) the process of finding the present value of some future amount is called.............................. c) calculating the present value of a future cash flow to determine its value today is known as....................................... d) Interest earned on the principal and may be for a number of years may be called...................................... e .................................. is the process of acculating interest in an investment over time to earn more interest. f) the interest earned on both the initial principal and the interest reinvested from prior periods is reffered to as............... ..........................When a lump sum investment shows growth, even if the interest rate stays low, it is known as.. 1- discount rate 2-opportunity cost 3-return on investement 4-compounding growth
- The future value of a single sum A. is generally larger than the present sum. B. decreases as the number of periods increases. C. does not depend upon the number of periods. D. decreases as the interest rate increases.Explain Why you agree or disagree with the following statements. The answer should not be more than 3 sentences. Be specific in your answer and write only the most relevant explanations All other things held constant; the future value of an annuity due is always having a lower future value than an ordinary annuity. A firm should select the capital structure that is fully leveredIf the rate of interest that your investment can earn on a 2-year investment is zero, which of the following statements is NOT CORRECT? * a. All of the statements are correct. b. The payment for the use of your money for two years is zero. c. The future value of your investment is higher than your present value at the end of the investment period. d. You will receive the same amount you invested at the beginning of the 2-year period at the conclusion or maturity of the investment.