What effect on an ordinary annuity

Assignment Help Financial Management

Reference no: EM132007737

1. Increasing the interest rate will have what effect on an ordinary annuity?

A. Present value will decrease and the future value will increase

B. Both the present and future values will decrease

C. Both the present and future values will increase

D. Present value will increase and the future value will decrease

2. How much must you deposit today to be able to make 12 annual payments of $50,000 each if you can earn 4.3% and the first payment is in seven years?

A. $461,190

B. $358,240

C. $343,471

D. $593,726

Reference no: EM132007737

Questions Cloud

How might a company avoid the drawbacks : Select a business theory and describe the drawbacks of basing a strategy or policy on that theory. Discuss why the theory is necessary.

Effect of monetary and fiscal policy : What are the implications of these lags for the debate over active versus passive policy?

Us dollar exchanges for how many euro : Suppose that the Canadian dollar exchanges for 1.01 US dollars and also for 0.77 Euro. A US dollar exchanges for how many Euro?

Create change in your current workplace : Identify advocacy strategies that you can use to create change in your current workplace. (Hospice Nurse). The response must be typed.

What effect on an ordinary annuity : Increasing the interest rate will have what effect on an ordinary annuity?

Examine internal effectiveness and resources : Examine internal effectiveness and resources, and how they impact organizational strategies.

Explain the production possibility frontier : Using a diagram and relevant assumptions explain the production possibility frontier (PPF).

Differences in transaction exposure vs economic exposure : What are the differences between transaction exposure vs economic exposure?

Evaluate the integration of strategic management functions : Evaluate the integration of strategic management functions used to achieve competitive advantage.

User Account

All Pages