Question

TRUE/FALSE, Need #s11-20

O O 11. Among the four methods discussed in this chapter, the table method was considered the most desirable. 12. Other things equal, the shorter the wait, the greater the present value will be. O O O O 13. If PV = $100, n= 5 and r = 10%, the FV>$150. 0 0 14. In #13, the FVIF > 1.55. O O 15. If FV = $500, n= 8 and r = 11%, PV > $220 O O 16. In #15, the PVIF < 0.55. O O 17. If r> 0% and n>0, PVIF < 1. O 0 18. If r> 0% and n > 0, FVIF< 1. O O 19. If PV = $100, FV = $200 and n= 20,r> 4%. O O 20. If PV = $100, FV = $200 and r = 7%, n> 10.

Answer 1

1.
False, financial calculator/excel/formula are more desirable

2.
True

3.
True
FV=100*1.1^5=161.0510000

4.
True

5.
False
PV=500/1.11^8=216.9632481

6.
True

7.
True

8.
False

9.
False
r=(200/100)^(1/20)-1=3.53%

10.
True
n=log(200/100)/log(1+7%)=10.2447684