1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dybincka [34]
3 years ago
6

if interest rates are positive, the future value of a given sum will always be less than the present value

Business
1 answer:
Alexeev081 [22]3 years ago
5 0

Answer:

False. If interest rates are positive, the future value will always be more than the present value.

Explanation:

Future value is given by:

FV = PV (1 + i)^{n}

wherein, FV=  Future Value

              PV= Present Value

              i = rate of interest per period

              n = number of periods

So, if interest rates are positive, the current investment shall be compounded to arrive at Future value which would turn out to be more than the present value.

For example, $ 100 invested today at 10% per annum, after an year would yield $110. This represents future value.

In case future value is provided as 110$ and rate of interest is given as 10% per annum, such future value discounted at 10% would give $100 today which represents the present value.

Thus, Future value will always be more than the present value if interest rates are positive.

You might be interested in
By the time a child is two years old, they have _____synaptic connections in their brain than an adult.
Mrac [35]
the answer is A: more
7 0
3 years ago
Assume that you are working for a manufacturing company in the United States that hopes to sell its products throughout the worl
Nostrana [21]

The correct matches are the following.

1. Increasing the number of products your company exports from the United States to Canada without tariffs that could hurt profits. = e) NAFTA.

2. Resolving an issue that involves rules of trade that are impacting your business as you try to increase distribution to several markets in Africa. = b) World Trade Organization.

3. Selling your products to an expanding middle class of consumers in Guatemala. = d) DR-CAFTA

4. Problems selling to Japanese consumers due to the instability of the exchange rate between American and Japanese currencies. c) International Monetary Fund.

5. Allowing your manufacturing plant in Spain to quickly reduce barriers in its efforts to market and sell products in France. = a) European Union.

Knowing these organizations and their main functions will help you to understand foreign trade, its characteristics in a b¿globalizaed world, and the peculiarities according to each region. Every trade agreement has its details and you want to become an expert in the region you choose to maximize your sales and profits.

That is why many countries associate in trade agreements, as is the case of NAFTA, the North America Free Trade Agreement signed by Mäxico, the United States, and Canada, now turned into USMCA, the United States, México, and Canada Agreement.

8 0
3 years ago
Suppose the market for pizzas is unregulated. That is, pizza prices are free to adjust based on the forces of supply and demand.
Ghella [55]

Answer:

The correct word for the blank space is: lower; buyers to offer higher prices.

Explanation:

In a market driven by supply and demand laws, shortages are caused because of excess in demand as a result of lower prices. Thus, that price is lower than the equilibrium price. Besides, if there is a need to push that price to its equilibrium level, sellers will have to increase the price implying buyers will have to offer higher prices.

5 0
3 years ago
A___ warranty promises replacement or refund for defective products.
alukav5142 [94]

Answer:

A written warranty promises replacement or refund for defective products.

5 0
2 years ago
List one method for accepting a job offer and one method for rejecting a job offer.
Sophie [7]
For both accepting and rejecting, thank the employer for the wonderful opportunity that was given. When accepting state that you are happy with the employment terms, and the salary that was given. When rejecting tell the employer thank you, but simply state how there may have been better opportunities, or how the job was not the right fit for you. Both should be done either by email or phone.
8 0
3 years ago
Read 2 more answers
Other questions:
  • Lysol sanitizing wipes entered the market at a low sales price and was supported by heavy couponing. As the initial trial period
    9·2 answers
  • A bank initially has $190 million in assets and $150 million in liabilities. the banks net worth (capital) is _____________ mill
    13·1 answer
  • One might infer from a debit balance in allowance for doubtful accounts that
    6·1 answer
  • What are three ways to increase productivity?
    12·1 answer
  • Lew Co. sold 200,000 corrugated boxes for $2 each. Lew's cost was $1 per unit. The sales agreement gave the customer the right t
    5·1 answer
  • Direct and Indirect Costs Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,
    5·1 answer
  • A father wants to save for his eight?year?old son�s college expenses. The son will enter college 10 years from now. An annual am
    11·1 answer
  • Assume that a customer shops are a local grocery store spending an average of $400 a week, resulting in the retailer earning a $
    9·1 answer
  • Chewy candy manufacturers are coming out with more true-to-fruit flavors, with some companies even fortifying their confections
    15·1 answer
  • Jericho Snacks is an all-equity firm with estimated earnings before interest and taxes of $624,000 annually forever. Currently,
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!