Login

Contact Us
Homework
Ask a Homework Question, Get an Answer ASAP!
Not a Homework Question?
How JustAnswer Works:
Ask an Expert
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 Neo Your Own Question
Neo, Tutor
Category:
Homework
Satisfied Customers:
12040
Experience:
BS Accounting
Type Your Homework Question Here...
Neo is online now
As the compounding rate becomes lower and lower, the future
Resolved Question:
As the compounding rate becomes lower and lower, the future value of inflows approaches: (Points: 5)
0.
the present value of the inflows.
infinity.
Need more information.
2. If you invest $8,000 at 12% interest, how much will you have in 7 years? (Points: 5)
$18,016
$3,616
$17,688
$80,712
3. The concept of time value of money is important to financial decision making because: (Points: 5)
it emphasizes earning a return on invested capital.
it recognizes that earning a return makes $1 worth more today than $1 received in the future.
it can be applied to future cash flows in order to compare different streams of income.
all of the above
4. As the discount rate becomes higher and higher, the present value of inflows approaches: (Points: 5)
0.
minus infinity.
plus infinity.
Need more information.
5. An annuity may be defined as: (Points: 5)
a payment at a fixed interest rate.
a series of payments of unequal amount.
a series of yearly payments.
a series of consecutive payments of equal amounts.
6. You are to receive $12,000 at the end of 5 years. The available yield on investments is 6%. Which table would you use to determine the value of that sum today? (Points: 5)
Present value of an annuity of $1
Future value of an annuity
Present value of $1
Future value of $1
7. As the interest rate increases, the present value of an amount to be received at the end of a fixed period: (Points: 5)
increases.
decreases.
remains the same.
not enough information to tell
8. As the time period until receipt increases, the present value of an amount at a fixed interest rate: (Points: 5)
decreases.
remains the same.
increases.
not enough information to tell
9. If you were to put $1,000 in the bank at 6% interest each year for the next ten years, which table would you use to find the ending balance in your account? (Points: 5)
Present value of $1
Future value of $1
Present value of an annuity of $1
Future value of an annuity of $1
10. The IF for the future value of an annuity is 4.5 at 10% for 4 years. If we wish to accumulate $8,000 by the end of 4 years, how much should the annual payments be? (Points: 5)
$2,500
$2,000
$1,778
none of the above
11. Mr. Blochirt is creating a college investment fund for his daughter. He will put in $850 per year for the next 15 years and expects to earn an 8% annual rate of return. How much money will his daughter have when she starts college? (Points: 5)
$11,250
$12,263
$24,003
$23,079
12. Mr. Nailor invests $5,000 in a certificate of deposit at his local bank. He receives annual interest of 8% for 7 years. How much interest will his investment earn during this time period? (Points: 5)
$2,915
$3,570
$6,254
$8,570
13. 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? (Points: 5)
the $1 million dollars in 50 years
$2,000 today
She should be indifferent.
need more information
14. 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? (Points: 5)
$627.93
$697.00
$823.15
$531.81
15. 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? (Points: 5)
Between 11% and 12%
Between 8% and 9%
17%
none of the above
16. The shorter the length of time between a present value and its corresponding future value: (Points: 5)
the lower the present value, relative to the future value.
the higher the present value, relative to the future value.
the higher the interest rate used in the presentvaluation.
none of the above
17. A dollar today is worth more than a dollar to be received in the future because: (Points: 5)
the dollar can be invested today and earn interest.
of the risk of nonpayment in the future.
inflation will reduce purchasing power of a future dollar.
none of the above
18. The higher the rate used in determining the future value of a $1 annuity: (Points: 5)
the smaller the future value at the end of the period.
the greater the future value at the end of a period.
the greater the present value at the beginning of a period.
None of the above – the interest has no effect on the future value of an annuity.
19. 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? (Points: 5)
3%
Between 14% and 16%
13%
none of the above
20. Increasing the number of periods will increase all of the following EXCEPT: (Points: 5)
the present value of an annuity.
the present value of $1.
the future value of $1.
the future value of an annuity.
Submitted:
3 years ago.
Category:
Homework
Expert:
Neo
replied 3 years ago.
THIS ANSWER IS LOCKED!
You can view this answer by clicking here to
Register
or
Login
and paying $3.
If you've already paid for this answer, simply
Login
.
Neo, Tutor
Category:
Homework
Satisfied Customers:
12040
Experience:
BS Accounting
Neo and 4 other Homework Specialists are ready to help you
Ask your own question now
JustAnswer in the News:
Askadoc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses workfromhome jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
What Customers are Saying:
Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.
Mary C.
Freshfield, Liverpool, UK
<
Last

Next
>
Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.
Mary C.
Freshfield, Liverpool, UK
This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!
Alex
Los Angeles, CA
Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.
GP
Hesperia, CA
I couldn't be more satisfied! This is the site I will always come to when I need a second opinion.
Justin
Kernersville, NC
Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around.
Esther
Woodstock, NY
Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know.
Robin
Elkton, Maryland
He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here.
Diane
Dallas, TX
Meet The Experts:
Manal Elkhoshkhany
Tutor
Satisfied Customers:
4514
More than 5000 online tutoring sessions.
<
Last

Next
>
http://ww2.justanswer.com/uploads/BU/BusinessTutor/201222_115741_Kouki2.64x64.jpg
Manal Elkhoshkhany's Avatar
Manal Elkhoshkhany
Tutor
Satisfied Customers:
4514
More than 5000 online tutoring sessions.
http://ww2.justanswer.com/uploads/LI/lindaus/2012610_04811_IMG20120609164157.64x64.jpg
Linda_us's Avatar
Linda_us
Finance, Accounts & Homework Tutor
Satisfied Customers:
3099
Post Graduate Diploma in Management (MBA)
http://ww2.justanswer.com/uploads/lanis/200941_233717_phput9xef_c1pm.jpg
Lani S.'s Avatar
Lani S.
Tutor
Satisfied Customers:
2453
Registered Nurse, Internet Researcher, Private Tutor
http://ww2.justanswer.com/uploads/chooser77/20090818_162025_Chris.jpg
Chris M.'s Avatar
Chris M.
M.S.W. Social Work
Satisfied Customers:
2258
Master's Degree, strong math and writing skills, experience in oneonone tutoring (college English)
http://ww2.justanswer.com/uploads/ComputersGuru/20100213_051118_Photo41.JPG
LogicPro's Avatar
LogicPro
Engineer
Satisfied Customers:
2193
Expert in Java C++ C C# VB Javascript Design SQL HTML
http://ww2.justanswer.com/uploads/JawaadAhmed/2009627_12137_SIs_SHadi.jpg
F. Naz's Avatar
F. Naz
Chartered Accountant
Satisfied Customers:
1962
Experience with chartered accountancy
http://ww2.justanswer.com/uploads/JK/jkcpa/2011116_182614_jkcpa.64x64.jpg
Bizhelp's Avatar
Bizhelp
CPA
Satisfied Customers:
1865
Bachelors Degree and CPA with Accounting work experience
Related Homework Questions
Question
Date Submitted
I am having trouble understanding this assignment. It is due
4/18/2014
Ch08 P08 Build a Model This is a spreadsheet problem that
4/17/2014
Question for R.R. Jha, only
4/16/2014
**For TheDoctor** http://ge.tt/86Xo4Lb1?c Will need by
4/16/2014
c++ program that requests a password and verifies that it is
4/16/2014
hi, help on this please? http://www.justanswer.com/h
4/16/2014
Questions for Homework Jay.
4/16/2014
For ALTProg ONLY Hi ALTProg, I need help computing the number
4/16/2014
Using Python I need to create a program Needs to: Ask how
4/16/2014
This is meant to be a fun assignment involving recursion! Write
4/15/2014
X
Ask a Tutor
Get a Professional Answer. 100% Satisfaction Guaranteed.
61 Tutors are Online Now
Type Your Homework Question Here...
characters left: