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
The annual earnings of a typical investor are
fenix001 [56]

Answer:

The answer Is c

Explanation:

4 0
3 years ago
Jordan's Ice Creams is strategically located near a university. After realizing that most of its customers, who are mostly stude
olga2289 [7]

Answer:

D) Focused differentiation strategy.

Explanation:

A focus differentiation strategy is meant to satisfy very different and specific needs of their customers. It is not just about making a different product that customers may like, it is about making very specific products that appeal to specific clients.

Jordan's Ice Cream is offering hundreds of customized products, each customized product appealing to a small number of clients. In this case, making unique ice cream combinations is not that expensive, but usually this type of strategy works well in very luxurious products.

7 0
3 years ago
Read 2 more answers
price level to Suppose the central bank in the nation of Zook attempts to pay off its national debt by printing large amounts of
katen-ka-za [31]

Answer:

87.50%

Explanation:

The calculation of value of Zook's currency will decrease in percentage is shown below:-

For computing the Percentage decrease first we need to find out the value of money which is shown below:-

Value of money = 1 ÷ Price level

= 1 ÷ 8.00

= 0.125

Percentage decrease = (Value of money - 1) ÷ 1 × 100%

= (0.125 - 1) ÷ 1 × 100%

= -0.875 ÷ 1 × 100%

= 87.50%

5 0
3 years ago
You want to save $98,000 to buy an boat by making an equal, end of year payment into a brokerage account for the next 9 years. I
malfutka [58]

Answer:

Annual deposit= $7,930.11

Explanation:

Giving the following information:

FV= $98,000

n= 9 years

i= 0.0775

<u>To calculate the annual deposit, we need to use the following formula:</u>

<u></u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (98,000*0.0775) / [(1.0775^9) - 1]

A= $7,930.11

6 0
3 years ago
Read 2 more answers
savings account a and savings account B both offer aprs of 11% but savings account A compounds intrest quarterly while Savings A
Sever21 [200]

The answer is savings account A.

Since savings account A compounds the interest quarterly it adds interest to the account every quarter. This makes it a more profitable account than one that compounds the interest semiannually. The reason is that the bank is adding interest more frequently, so you are earning interest on the interest that the bank has already paid you.

3 0
3 years ago
Read 2 more answers
Other questions:
  • Which of the following is exchange traded?
    7·1 answer
  • 5. Which is an external users of accounting?
    11·1 answer
  • A student who works at a record store and plays in a rock band thinks for a minute about his own music-purchasing habits, and th
    6·1 answer
  • Which of these careers interest you? Check any that apply.
    5·2 answers
  • Monty loaned his friend Ned $20,000 three years ago. Ned signed a note and made payments on the loan. Last year, when the remain
    12·1 answer
  • A broker received a very high offer on a piece of property from a buyer. Bill makes a low offer through a "dummy" purchaser, or
    11·1 answer
  • For several years in a row, the east coast cities of the nation suffered extremely cold winters. Demand for home heating oil was
    10·1 answer
  • An inmate escapes from the county prison. there is a $500 reward offered for any information leading to the capture of the inmat
    6·1 answer
  • First, look up a treaty via the Internet or a book, cite your source, and answer the following questions in a report of at least
    9·1 answer
  • Dorothy and matt are ready to purchase their first home. their current monthly cash inflows are $4900, and their current cash ou
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!