Question
What happens to future value of a lump sum if you increase the length of time involved (for example, going from 5 years to 10
What happens to future value of a lump sum if you increase the length of time involved (for example, going from 5 years to 10 years)?A) No Change to the future valueB) Future value increases.C) Future value decreasesD) The PV becomes negative.
If the US T-Bill rate is 1.7%, the US expected inflation rate is 0.6%, the real rate of interest for Brazil is 2.2%, the default risk premium for Amazon is 0.9%, the maturity premium for Amazon debt is 1.2%, and the liquidity premium is 0.4%, then what is the expected interest rate (cost of capital) Amazon will have to pay to borrow?
The PVAF (present value annuity factor) is:
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