Chapter 5&6 Quiz
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 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
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.
The variables in a present value of an annuity problem include
Interest Rate Time Period Payments
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 an annuity problem is
The Present Value
Whats the hourly pay increase for knowing excel?
$20.14 to $22.16
What are four reasons to learn excel?
-Not just for making tables -helps you get stuff done more efficiently -increase salary -can make you better at your job
Increase for salary based on knowing excel
$1,000 to $7,000
The variables in a future value of a lump sum problem include
Time Period Future Value Interest Rate
The variables in a present value of an annuity problem include
Time Period Interest Rates Payments
The variables in a present value of a lump sum problem include
Time Period Present Value Interest rate