Multiple Choice
Using the future value table, a student found that the future value amount of $1 for 5 years at an annual interest rate of 10% is 1.611. The student also observed that the future value of $1 for 5 years at 10% compounded semiannually is 1.629. This means that
A) the student was looking in the wrong column; the second amount should be 1.611/2.
B) the more often the compounding, the higher the future value.
C) there was an error in the table.
D) when interest is compounded semiannually, more money must be deposited to have a desired ending balance.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: All of the following are characteristics of
Q2: The payment of accounts payable results in
Q4: Interest payable on a loan becomes a
Q7: Current liabilities are defined as those liabilities
Q90: If a 12% interest rate is compounded
Q102: From the following list, identify whether the
Q119: The classification of current liabilities is closely
Q153: If a bank discounts a note,then the
Q154: Assume that you know the total dollar
Q174: Generally, an increase in a current liability