How would an increase in the interest rate or a decrease in the number of periods until the payment is received affect the present value (PV) of a sum of money?
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How would an increase in the interest rate or a decrease in the number of periods until the payment is received affect the present value (PV) of a sum of money?
Please explain properly. Thank you!
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- What happens to the present value of some fixed dollar amount to be received in the future as time to the money decrease? Why?If a person charges interest on a loan transaction equivalent to the inflation rate than will it be still called Riba? How would then the issue of time value of money be resolved?How would an increase in the interest rate effect the present value of an annuity problem (all other variables remain the same)
- Illustrate with examples , that Interest rate is equivalent to the savings rate from the deposits?If you're calculating the present value of future payments, you're using an annuity. Is this statement accurate or incorrect?Which of the following is not needed to compute the present value of an investment?a. The length of time between the investment and future receiptb. The interest ratec. The rate of inflationd. The amount of the receipT
- What is the Time Value of Money (TVM)? Specifically, how do inflation and compound interest effect the value of the cash you have on hand or hope to accumulate?Which figure of merit provides an interest rate at which the present value of the future cash flows equals the amount invested? a) NPV b) IRR c) Cap Rate d) DCF Please ensure accuracy and explain your choiceThe time value of money depends on three factors: money, interest rate, and time. Provide present and future value examples of how an increase in interest rates and time (compounding) affects the time value of money.
- how do you figure out interest rate changeWhat do you understand by the present value of money? Group of answer choices A. Amount borrowed or deposited B. Maximum that can be deposited C. Sum of deposit and interest D. Another name for the futureWhich of the following characteristics is a necessary feature for pricing a set of cash flows as an ordinary annuity? Group of answer choices The period of time between each cash flow must not vary. More than one of the other options are correct. The cash flows must not be a fixed, regular amount. The cash flows must occur on a yearly basis.