Question
2. Which of the following statements is true? (a) Present value calculations involve converting the initial amount into a future amount. (b) The present value
2.
Which of the following statements is true?
| (a) | Present value calculations involve converting the initial amount into a future amount. | |
| (b) | The present value (PV) is often called the compounded value of future cash payments. | |
| (c) | The present value is calculated by using the discount factor. | |
| (d) | The future value of an investment is the reciprocal of its present value. |
3.
As per the rule of 72, the time to double your money (TDM) approximately equals:
| (a) | 72/n. | |
| (b) | 72/i. | |
| (c) | 72/Initial investment. | |
| (d) | 72/Future value. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Risk Management And Financial Institutions
Authors: John C Hull
6th Edition
1119932483, 9781119932482
