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You are watching: As the compounding rate becomes lower and lower, the future value of inflows approaches

As there room multiple questions, i shall prize the an initial four questions, please repost the remainder of the question separately. 3) as the absorption rat…View the complete answer
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Transcribed image text: A. 0 C. Infinity. 3) together the compounding rate becomes lower and lower, the future value of inflows approachers B. The present value the the inflows. D. Much more information is needed to price the question. -4) If girlfriend invest $10,000 this day at 10% interest, just how much will certainly you have actually in 10 years? A. $13,860 B. $25,940 C. $3,860 D. $80,712 5) together the interest price increases, the present value A increases. B. Decreases. C. Continues to be the same. D. Not enough information is provided to tell. -6) Sharon blacksmith will receive $1 million in 20 years. The discount price is 10%. Together an alternative she can receive $200,000 today. Which have to she choose? A. The $200,000 today. B. The $1 million in 20 years. C. Both same the exact same value. D. Neither option would it is in preferred. 7) Ambrin Corp. Expects to receive S2.000 in ~ the finish of annually for 10 years. Climate the every year for the adhering to 10 years, in ~ the finish of each year. What corporation expects to obtain $3,500 is the approximate current value the this 20-year cash flow? use an 8% discount rate. A. $24,294 B $27,870 C. $32.389 D2.547 8) Mr. Fish wants to build a residence in ten years. He approximates that the total cost will be $150,000 f he have the right to put next $10,000 in ~ the end of each year, what price of return must he earn in stimulate to have the amount needed? A. In between 8% and 10% C. Over 10% B. Between 6% and 8% D. In between 4% and 6% 9) Babe Ruth Jr. Has agreed come play because that the Cleveland Indians for $3 million every year for the following 10 years. What table would you use to calculation the worth of this contract in today's dollars? A. Existing value of an annuity B. Current value of a solitary amount C. Future worth of one annuity D. Future worth of a dollar 10) Joe Nautilus has $210,000 and also wants come retire. What almost right return must his money knife so he might receive annual benefits that $30,000 for the following 10 years? A. Better than 10% C. In between 6% and also 8% D. Reduced than 6% B. Between 8% and 10% 11) You will certainly deposit $200,000 today. That will grow for 5 years in ~ 12% interest, but compounded semi-annually. What will certainly your investment prosper to? A $111,600 B. $1,120,000 C. $352,468 D. $358,200 12) man Doeber obtained $150,000 come buy a house. His loan price was 6% and he promised come repay the loan in 10 equal yearly payments. What space John's annual payment amounts? A. $15,000 B. $20,380 C. $15,445 D. $11,453 3