Multiple Choice
Which of the following statements is true about the time value of money?
A) The future value of a single sum will be greater if funds earn 5% instead of 10%.
B) The future value of a single sum will be unaffected by the rate of return at which funds grow.
C) The future value of a single sum will be greater if funds earn 12% instead of 6%.
D) The future value of a single sum will be unaffected by the length of time funds are invested.
Correct Answer:
Verified
Correct Answer:
Verified
Q5: The time value of money is created
Q19: What is the present value of an
Q20: If you want to have $875 in
Q26: Why is the concept of the time
Q26: The future value of a lump sum
Q29: An investment has a nominal interest rate
Q31: Northwest Bank pays a quoted annual (nominal)interest
Q35: The future value of $500 deposited into
Q56: Determining the specified amount of money that
Q63: You just purchased a parcel of land