chp 5 finance connect
how would a decrease in the interest rate effect the future value of a lump sum, single amount problem?
decrease the future value
how would an increase in the interest rate effect the present value of an annuity problem
decrease the present value
the variables in a present value of a lump sum problem do not include
free cash flow payments
the variable that you are solving for in a future value of a lump sum project is
future value
the variable that you are solving for in a future value of an annuity problem is
future value
how would you decrease in the interest rate effect the present value of a lump sum, single amount problem?
increase the present value
the variables in a future value of an annuity problem include all of the following
interest rate payments time period future value
what is the future value of 1000 invested for 15 years at a rate of 5%?
2079
what is the future value of 500 invested each year for 20 years at a rate of 10%?
28,637
what is the future value of 1200 invested for 20 years at a rate of 6%?
3849
what is the present value of 1000 to be received in 12 years invested at a rate of 8%
397
what is the present value of 1200 to be received in 18 years invested at a rate of 5%?
499
what is the future value of 400 invested each year for 15 years at a rate of 6%?
9310
the variables in a future value of a lump sum problem do not include
annuity payments volatility
a common error made when solving a future value of an annuity problem is
multiplying the annual deposits and the number of years before calculating the problem
the following variables in a future value of an annuity problem include
payments interest rate future value time period
the variable that you are solving for in a present value of a lump sum problem is
present value
the variables in a present value of a lump sum problem include
present value time period interest rate
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 inlcude
time period interest rate payment
the variables in a future value of an annuity problem include all of the following except
usage