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
Lemur [1.5K]
2 years ago
14

Suppose you will receive a payment of $300 one year from now. True or False: If during the year the interest rate rises, this in

creases the present value of your future payment. True False
Business
1 answer:
stepladder [879]2 years ago
5 0

Answer:

False

Explanation:

When value of money is evaluated over time, the interest rate is put into consideration.

Present value of future cash flows of a loan is an estimate of how much will be paid on a certain amount given a specific interest rate over a period of time.

So if there is a fall in interest rate it means that less of the original amount is being discounted, so present value increases.

On the other hand when interest rate increases more of original amount is discounted. So the present value reduces.

In the given scenario when you receive a payment of $300 one year from now and during the year the interest rate rises, this reduces the present value of your future payment

You might be interested in
Consider this scaled figure of a swimming pool. The dimensions of the original pool are 24 feet wide by 36 feet long.
Neko [114]

Answer:

3/5

Explanation:

9.6

5 0
2 years ago
Read 2 more answers
Keisha owns a house worth $275,000 with a mortgage of $195,000. She owns a car worth $12,000 and has $7,500 in car loans. She ha
avanturin [10]
House is worth 275- 195= 80k equity.  Car is 12k-7500= 4.5k equity plus 3k investments plus 2700 in the bank minues 1500 credit card debit= 88,700
8 0
3 years ago
Read 2 more answers
Consider a U.S. importer desiring to purchase merchandise from a Dutch exporter invoiced in euros, at a cost of €512,100. The U.
Anestetic [448]

Answer:

The importer accepts this price, so his bank will debit the importer's account in the amount of $500,000.

A. debit, $500,000

Explanation:

Bank debit is a bookkeeping term for realization of the reduction of deposits held by bank customers. A bank debit occurs when a bank customer uses the funds in their account, therefore reducing their account balance.

Euros 512100  

   

dólar 1 1,0242 euros

         x 512100  euros

   

x= 500.000  

7 0
3 years ago
Do you believe initiative is an important quality? Defend your answer.
Olegator [25]

Initiative is an important quality because it proves that you want to do your job or task successfully and independently. Lack of initiative shows laziness and/or low confidence in one's skills.

3 0
3 years ago
Read 2 more answers
When a person is authorized by the principal to transact all affairs in connection with a particular type of business or trade o
yawa3891 [41]

Answer:

General agent

Explanation:

A general agent is a person that the principal authorises to perform transactions in relation to a part business on a certain place.

A general agent can perform all acts in relation to a business that has been assigned by the principal. For example in real estate when an agent performs property management functions for his client he is acting as a general agent.

On the other hand a special agent is one that is employed by a principal to perform a specific task or job and his scope of responsibility is limited to that job function.

6 0
3 years ago
Other questions:
  • Suki's salary is $1,200 per month. What is her yearly salary?
    7·2 answers
  • The purchasing power of the dollar would fall by 20% if the price index rises by:A. 44 percentB. 12.5 percentC. 25 percentD. 10
    12·1 answer
  • Coca-Cola was first marketed in the 1860s as a patent medicine, designed to offer the virtues of cocaine without the vices of al
    6·1 answer
  • Due to synergism, if you take two depressants together, it may be the same as taking __________.
    7·1 answer
  • The manager of Dukey’s Shoe Station estimates operating costs for the year will include $480,000 in fixed costs. Required: a. Fi
    10·1 answer
  • Which of the following statements is false?
    5·2 answers
  • What is the discounted payback of a project that has an initial outlay of $20,000 and will generate $6,000 in year 1, $12,000 in
    14·1 answer
  • True or false?John says to his friend, "This concert is going to cost me $20 when I buy the ticket." His friend corrects him and
    6·1 answer
  • Company Name: XXX XXX Coffee Co
    10·1 answer
  • An institutional client wishes to open an account at a brokerage firm, but wants the positions in the account held at a bank and
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!