Which factors would show the largest value

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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

Reference no: EM132813415

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