Finance Chapter 5/6

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

How would a decrease in the interest rate effect the future value of a lump sum, single amount problem (all other variables remain the same)

Decrease the future value.

How would a decrease in the interest rate effect the future value of a lump sum, single amount problem (all other variables remain the same)?

Decrease the future value.

The variables in a present value of a lump sum problem include all of the following, except

Free Cash Flows

How would a decrease in the interest rate effect the present value of a lump sum, single amount problem (all other variables remain the same)

Increase the present value.

How would an increase in the interest rate effect the present value of an annuity problem (all other variables remain the same)

decrease the present value

The variable that you are solving for in a future value of a lump sum problem is

future value

A common error made when solving a future value of an annuity problem is:

Multiplying the annual deposit and the number of years before calculating the problem.

The variable that you are solving for in a present value of a lump sum problem is

Present value

The variables in a future value of a lump sum problem include all of the following, except

annuity payments

The variables in a future value of a lump sum problem include all of the following, except

payments

The variables in a present value of a lump sum problem include all of the following, excep

payments

The variables in a present value of an annuity problem include all of the following, except

risk profile

The variables in a present value of an annuity problem include all of the following, except:

source of funds

The variable that you are solving for in a present value of an annuity problem is

the present value


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