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Sergeeva-Olga [200]
3 years ago
11

Which of the following would best describe what would happen to the time value at the same nominal annual rate of a cash flow as

the number of interest compounding periods increases?
A) Both the present value and future value would increase.
B) The present value would decrease and the future value would increase.
C) Both the present value and future value would decrease.
D) The present value would increase and the future value would decrease.
Business
1 answer:
djverab [1.8K]3 years ago
7 0

Answer:

A) Both the present value and future value would increase.

Explanation:

If the compounding frequency increases, then both the present value and the future value will increase because the effective annual rate will increase. E.g. interest used to be compounded every 6 months, now it is compounded monthly.

Both the present value and the future value vary jointly, if the present value decreases, then the future value will also decrease, and vice versa.

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Answer:

The correct answer is the option C: Clarification and justification.

Explanation:

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Answer:

$5,000

Explanation:

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3 years ago
A storeowner orders 25 calculators that cost ​$4747 each. The storeowner can sell each calculator for ​$5656. The storeowner sol
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Answer:

$5,592

Explanation:

Given:

Number of calculators ordered = 25

Cost of each calculator = $4747

thus,

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