15106981 30295 0AAA082801 SE4644547543750000 e Value of Money d Assignment | Rea
ID: 2786430 • Letter: 1
Question
15106981 30295 0AAA082801 SE4644547543750000 e Value of Money d Assignment | Read Chapter 5 | Back to Assignment Due Sunday 11.19.17 tempts: Average: /15 Future value Aa he principal of the time value of money is probably the single most important concept in financial manageme of the most frequently encountered applications involves the calculation of a future value. . This process requires The process for converting present values into future values is called knowledge of the values of three of four time-value-of-money variables. Which of the following is not one of t variables? O The duration of the investment (N) The interest rate (1) that could be earned by invested funds O The present value (PV) of the amount invested O The inflation rate indicating the change in average prices amount of interest earned during the deposit or investment perlod. Each line on the following graph corresponds an interest rate: 0%,9%, or 17%. Identify the interest rate that corresponds with each line. All other things being equal, the numerical difference between a present and a future value corresponds to VALUE IDollars IME IYearsExplanation / Answer
The snapshots taken are not clear and edges of the pics have omitted some portion of the questions. Anyways I have tried to figure out and answer.
Answer to the first question in fill-in-the-blanks is Compounding. The process of converting present values into future values is known as compounding.
Among the four variables, Inflation is not the one of the variables, which is required for time value of money. The other three variables are very much required for time value of money calculation. So Answer is Fourth Option.
From the graph provided, it is clear that Line A has seen the highest rise in recent years and Line C has seen no growth in last few years, whereas Line B is slowly growing. With the options provided, Line C clearly states that it has a 0% interest with zero growth. Line A being highest growth, has 17% interest and Line B having moderate growth should be 9%.
Line A: 17%
Line B: 9%
Line C: 0%
Investments and Loans consider two methods of interest rate calculation: Namely they are Simple Interest rate Method and Compound Interest rate Method.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.