Question
Which of the following statements are TRUE? I. As you increase the interest rate, the future value of an investment increases. II. As you increase
Which of the following statements are TRUE?
I. As you increase the interest rate, the future value of an investment increases.
II. As you increase the length of investment timeframe (to receive a lump sum), the present value of the initial investment decreases.
III. The present value of an ordinary annuity is greater than the present value of an annuity due (all else being equal).
Multiple Choice
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I and III.
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II only.
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I and II.
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I only.
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Financial Accounting Group
Authors: Ilse Lubbe, Shelley Herbert, Goolam Modack
1st Edition
0195998634, 9780195998634
