Finance Chapter 5 TVM Tricky Topics
Réussis tes devoirs et examens dès maintenant avec Quizwiz!
The discount rate is also called the
rate of return
When the future value formula is used to calculate growth rates, the assumption is that _____ growth rate is achieved each year.
the same
Discount factor/ PVIF(r,t)
1/(i + r)^t
discount rate
FV/ (i + r)^t
Which formula will you enter into a spreadsheet cell to determine how long it will take $40 to grow to $240 at an interest rate of 6.53% compounded annually?
NPER(0.0653,0,−40,240)
the opposite of compounding is
discounting
