Samantha opened a savings account this morning. Her money will earn 3.5 percent interest, compounded annually. After four years, her savings account will be worth $5,000. Assume she will not make any withdrawals. Given this, which one of the following sta
This afternoon, you deposited $1,000 into a retirement savings account. The account will compound interest at 6 percent annually. You will not withdraw any principal or interest until you retire in 40 years. Which one of the following statements is correc
Your grandmother has promised to give you $10,000 when you graduate from college. She is expecting you to graduate three years from now. What happens to the present value of this gift if you speed up your graduation by one year and graduate two years from
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Which one of the following will produce the lowest present value interest factor?
A. 6 percent interest for 5years .
B. 8 percent interest for 5 years.
C. 6 percent interest for 10 years.
D. 8 percent interest for 5 years.
E. 8 percent interest for 10 yea
What is the relationship between present value and future value interest factors?
A. The present value and future value factors are equal to each other.
B. The present value factor is the exponent of the future value factor.
C. The future value factor is
Phillippe invested $1,000 10 years ago and expected to have $1,800 today. He has not added or withdrawn any money from this account since his initial investment. All interest was reinvested in the account. As it turns out, he only has $1,680 in his accoun
Which of these will increase the present value of an amount to be received sometime in the future?
A. Increase in the time until the amount is received.
B. Increase in the discount rate.
C. Decrease in the future value.
D. Decrease in the interest rate.
E