If 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.
If 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.
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 15PROB
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Question
If 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.
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