Multiple Choice
Which of the following statements is correct?
A) For all positive values of r and n, FVIFr, n ≥ 1.0 and PVIFAr, n ≥ n.
B) You may use the PVIF tables to find the present value of an uneven series of payments.However, the PVIFA tables can never be of use, even if some of the payments constitute an annuity (for example, $100 each year for Years 3, 4, and 5) , because the entire series does not constitute an annuity.
C) If a bank uses quarterly compounding for saving accounts, the simple rate will be greater than the effective annual rate.
D) The present value of a future sum decreases as either the simple interest rate or the number of discount periods per year increases.
E) All of the above statements are false.
Correct Answer:
Verified
Correct Answer:
Verified
Q39: Your father,who is 60,plans to retire in
Q66: You have determined the profitability of a
Q80: Your company must make payments of $100,000
Q82: What is the term used to describe
Q83: If you buy a factory for $250,000
Q84: You plan to invest an amount of
Q86: Assume that your required rate of
Q107: If a 5-year regular annuity has a
Q118: One of the potential benefits of investing
Q119: Which of the following statements is correct?<br>A)