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4 years ago

The present value of a lump sum future amount:__________

Business

1 answer:

SVEN [57.7K]4 years ago

6 0

Answer:

d) increases as the interest rate decreases.

Explanation:

Present value is the value today; future value is the value some time in the future.

The mere notion of the value of money in time should tell you that, further away in time (towards the future) a sum of money is found, the lower its value today.

Then, you should be able to rule out some propositions that are contrary to that intuition:

a) decreases as the time period decreases ↔ clearly false: the present value increases as the time period decreases

e) is directly related to the time period. ↔ clearly false: the present value is inversely related to the time period.

How is the present value related to the future value?

They are directly related: the higher a lump sum in the future the higher the value of it in the present; more money is more money always. More money in the future has more value in the present; less money in the future has less value in the present. Thus, the option b). is inversely related to the future value is false

How is the present value related to the interest rate?. Which one is true?

c) is directly related to the interest rate, or

d) increases as the interest rate decreases

The present value is calculated discounted the future value at the interest rate. The interest rate is in the denominator of the equation to pass from future value to present value. Thus, they are inversely related (c is false); the less the interest rate, the higher the present value of a future amount (confirm d is true).

Therefore, the correct answer is that the present of a lump sum future amount: d) increases as the interest rate decreases.

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Bethany works for FastFashion Inc. which has set the same sales target for all employees in their 550 stores across the globe. T

Iteru [2.4K]

Answer: c. unrealistic performance goals

Explanation:

From the question, we are informed that Bethany works for FastFashion Inc. which has set the same sales target for all employees in their 550 stores across the globe and that the company fails to take into account any environmental constraints which might hamper sales and to avoid being penalized, employees often falsify their sales reports.

Based on the scenario above, the issue triggering the employees' unethical behavior is unrealistic performance goals. Since the employees don't meet their target, they falsify their sales report.

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3 years ago

An effective minimum wage law can be expected to clear the market for unskilled workers. increase employment for some affected w

RoseWind [281]

Answer:

all of the above

Explanation:

The law related to the effective minimum wage could be predicted for non-skilled workers market, it raised the employment for some workers that are impacted, the number of firms should be increased, it decreased the non-skilled workers hours

So all of the above options is correct as it included all

6 0

3 years ago

Henrietta Marston plans to retire in the year 2050. She is considering a fund that will be more aggressive now and become more c

nadya68 [22]

Atnswer:

b. lifecycle fund

Explanation:

as from now to 2050 are still remaining 31 years, the money invested is able to go under different risk profiles, looking for getting the maximun return, the lifecycle fund is an excellent choice, it is because this kind of strategies changes according the risk of its costumer changes. it is expected to have during the first years a high exposition to risk such as equity or derivatives, and the more age of the costumer the lower risk profile, so the closer to 2050 the more expected investment into low risk assets, such as fixed income (this is made for having the less losses possible)

7 0

3 years ago

Maxwell Washington's weekly gross earnings for the week ending March 9 were $2,620, and her federal income tax withholding was $

Anon25 [30]

Answer:

1 million

Explanation:

4 0

3 years ago

The division of expenses and income between a buyer and seller at closing is known as…?

Fiesta28 [93]

Answer:

Prorating

Explanation:

Prorating refers to the amount that the seller is usually liable to pay the buyer as for the period of closing the deal to the date it is actually closed.

Basically any amount of rent that is earned by the seller on the property which is meant to be sold and that the buyer expected to settle the deal, on a date previous to the actual date on which the deal is done, then the amount of rent for such period is called prorated.

That is the closing amount of expenses or income in between the seller and the buyer, in a real estate transaction.

3 0

3 years ago