Reference no: EM132813415
Problem 1: Present value is
a. the value now of a future amount.
b. the amount that must be invested now to produce a known future value.
c. always smaller than the future value.
d. all of these.
Problem 2: Which of the following factors would show the largest value for an interest rate of 12% for six periods?
a. Present value of 1
b. Present value of an ordinary annuity of 1
c. Present value of an annuity due of 1
d. Answer cannot be determined
Problem 3: What factor should you use if you want to determine the value now of a ?1,000 payment due in three years' time?
a. Future value of 1
b. Present value of 1
c. Present value of an ordinary annuity of 1
d. Present value of an annuity due of 1