TFQ4
Once you determine that you are solving for the "PMT" variable, the appropriate formula to use is determined by the values of "r and n
False, its FV or PV
The simple FV formula is to be used to solve for the PV of an uneven stream of cash flows
False
To find the amount needed at the beginning of your retirement period that would enable you to make desired annual withdrawals from your account, you would solve for "PMT" in the FVA formula.
False, PMT in PVA formula
To find the "PMT" in the FVA or PVA formulas, we calculate the value in the bracket and then multiply it by the FVA or PVA.
False, divide
When solving for the future value of a stream of unequal cash flows, it is important to add together the values BEFORE applying the future value formula to determine their future value.
False, dont do that
With the PVA and PVP formulas, if the first "PMT" you use is for the end of period 8, then the formula will give you the value as of the end of period 9
False, end of period 8
To find the loan amount for a fixed-rate fully-amortized loan, solve for "PMT" in the PVA formula
False, solve for FVA
Perpetuities are like annuities that go on forever.
True
The variable "n" in the annuity formulas represents the number of "PMT"s.
True
When solving for the FV of an uneven stream of cash flows, the appropriate exponents go down as you go from left to right on the time line of those cash flows
True