24. Compounding is the process of accumulating interest in an investment over ti

Question

24. Compounding is the process of accumulating interest in an investment over time to earm more interest A. True. B. False. 25. What is the present value of $50,000 received 7 years from today if the discount rate is 10 percent? A. $25,000.00 B. S25,657.91 C. $28,223.70 D. $29,411.76 E. 31,000.00 26. What is the present value of the following end-of-ycar cash flows if the discount rate is 8 percent? Year Cash Flow 1 S170 2 $230 3 $480 4 $890 A. $1,149.65 B. S1,389.81 C. $1,430.57 D. S1,687.83 E. $1,890.83 27. Approximately how long must one wait (to the nearest year) for an initial investment of $1,000 to triple in value if the investment earns 8% compounded annually? A. 9 years B. 14 years C. 22 years D. 25 years E. 28 ycars

Explanation / Answer

24) Compounding is a pocess in which the investor earns interest on thier accumulated interest over time. Hence the answer is True for this question

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