Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.

Get a Professional Answer

Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.

100% Satisfaction Guarantee

Rate the answer you receive.

Ask Finance Expert Your Own Question

Finance Expert, MBA

Category: Homework

Satisfied Customers: 99

Experience: M. Phil (Business Admin. - Finance), MBA (Finance)

13310784

Type Your Homework Question Here...

Finance Expert is online now

1. As the compounding rate becomes lower and lower, the future

Resolved Question:

1. As the compounding rate becomes lower and lower, the future value of inflows approaches:
A) 0
B) the present value of the inflows
C) infinity
D) need more information

2. As the discount rate becomes higher and higher, the present value of inflows approaches:
A) 0
B) Minus infinity
C) Plus infinity
D) Need more information

3. XXXXX XXXXX will receive $1 million in 50 years. The discount rate is 14. As an alternative, she can receive $2,000 today. Which should she choose?
A) the $1 million dollars in 50 years
B) $2,000 today
C) She should be indifferent
D) Need more information

4. Dr. J. wants to buy a Dell computer which will cost $2,788 four years from today. He would like to set aside an equal amount at the end of each year in order to accumulate the amount needed. He can earn 7% annual return. How much should he set aside?
A) $627.93
B) $697.00
C) $823.15
D) $531.81

5. Mr. Fish wants to build a house in 10 years. He estimates that the total cost will be $170,000. If he can put aside $10,000 at the end of each year, what rate of return must he earn in order to have the amount needed?
A) Between 11% and 12%
B) Between 8% and 9%
C) 17%
D) None of the above

6. Mr. Darden is selling his house for $165,000. He bought it for $55,000 nine years ago. What is the annual return on his investment?
A) 3%
B) Between 14% and 16%
C) 13%
D) None of the above

7. Increasing the number of periods will increase all of the following EXCEPT:
A) the present value of an annuity
B) the present value of $1
C) the future value of $1
D) the future value of an annuity