What happens to the future value of some fixed dollar
Question # 00834722
Posted By:
Updated on: 11/23/2022 05:06 AM Due on: 11/23/2022
Answer the following questions:
- What happens to the future value of some fixed dollar amount invested today as the interest rate decreases? Why?
- What happens to the present value of some fixed dollar amount to be received in the future as the interest rate increases? Why?
- What happens to the present value of some fixed dollar amount to be received in the future as the time to receive the money decreases? Why?
- Which will have a higher present value, assuming the same discount rate, same # of payments, and same amount of payments, an ordinary annuity or an annuity due? Why?
- Which will have a higher future value, assuming the same discount rate, same # of payments, and same amount of payments, an ordinary annuity or an annuity due? Why?
-
Rating:
/5
Solution: What happens to the future value of some fixed dollar