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i marked all choices (choose one) thank you The principle of the time value of money is probably the single most important concept in financial

i marked all choices (choose one) thank you
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The principle of the time value of money is probably the single most important concept in financial management. One of the most frequently encountered applications involves the calculation of a future value. Compound interest occurs when interest is earned on prior periods interest Which of the following is not one of these variables? The Inflation rate indicating the change in average prices The duration of the investment (n) The interest rate () that could be earned by invested funds The present value (PV) of the amount invested All other things being equal, the numerical difference between a present and a future value corresponds to the amount of interest earned during the deposit or investment period. Each line on the following graph corresponds to an interest rate: 0%, 9%, or 19%. identify the interest rate that corresponds with each line. 920542 20000 04 15000 618826 DOLLARS (PV) 10000 38008 67934 94995 5000 136299 o O 39000 65000 95000 0 1 2 3 8 10 4 5 TIME Inerinis 6040/9119 910119 Line A corresponds to 9/1990 while Line B is consistent with Line c corresponds to simple amplex Interest and the Investments and loans base their interest calculations on one of two possible methods: the uncomplicated /tumpouvegfest methods. Both methods apply three variables the amount of principal, the interest rate, and the investment or deposit period--to the amount deposited or invested in order to compute the amount of Interest. However, the two methods differ in their relationship between the variables. Assume that the variables, n, and PV represent the interest rate, investment or deposit period, and present value of the amount deposited or invested, respectively. Which equation best represents the calculation of a future value (FV) using simple interest? OFV = PV + (PV XIXn) O FV = PV - (PV XrXn) FV = PV 1XX FV - PV XIX Which equation best represents the calculation of a future value (FV) using compound interest? OFV = PV x (1 + r)" O FV = PV + (PV XIX n) OFV = O FV - (+17 PV PV Identify whether the following statements about the simple and compound interest methods are true or false. True False All other factors being equal, when Interest is paid annually, both the simple interest and the compound interest methods will generate different amounts of earned Interest by the end of the first year. The process of earning simple interest does not allow a depositor or Investor to earn interest on any previously earned interest. After the end of the second year and all other factors remaining equal, a future value based on compound interest will exceed a future value based on simple interest. o Neha is willing to invest $15,000 for two years, and is an economically rational investor. She has identified three Investment alternatives (L, M, and P) that vary in their method of calculating interest and in the annual interest rate offered. Since she can only make one investment during the two-year investment period, complete the following table and indicate whether Neha should invest in each of the investments Note: When calculating each investment's future value, assume that all interest is compounded annually. The final value should be rounded to the nearest whole dollar Investment Interest rate and Method Expected future value Make this investment? 7% compound interest 17700/GROU 17174 6% simple interest 1 11% compound interest *17700/4487/1080p L M gesano P

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