Please kindly answer if it's true or false: 1) Since individuals are always confronted with opportunities to earn positive rates of return on their funds, the timing of cash flows does not have any significant economic consequences. 2) Time-value of money is based on the belief that a dollar that will be received at some future date is worth more than a dollar today. 3) Future value is the value of a future amount at the present time, found by applying compound interest over a specified period of time. 4) For a given positive interest rate, the future value of $100 increases with the passage of time. Thus, the longer the period of time, the greater the future value. 5) The greater the interest rate and the longer the period of time, the higher the present value.

Please kindly answer if it's true or false: 1) Since individuals are always confronted with opportunities to earn positive rates of return on their funds, the timing of cash flows does not have any significant economic consequences. 2) Time-value of money is based on the belief that a dollar that will be received at some future date is worth more than a dollar today. 3) Future value is the value of a future amount at the present time, found by applying compound interest over a specified period of time. 4) For a given positive interest rate, the future value of $100 increases with the passage of time. Thus, the longer the period of time, the greater the future value. 5) The greater the interest rate and the longer the period of time, the higher the present value.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter4: Managing Your Cash And Savings

Section: Chapter Questions

Problem 9FPE

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