For each of the following cases, indicate (a) to what rate columns, and (b) to what number of periods you would refer in looking up the interest factor. 1. In a future value of 1 table: Annual Number of Years Compounded (a) Rate of Interest (b) Number of Periods Rate Invested a. 11% Annually % b. 12% Quarterly % C. 12% 19 Semiannually % 2. In a present value of an annuity of 1 table: (Round answers to 1 decimal place, e.g. 458,58.1.) Number of Number of Annual Frequency of Years Rents (a) Rate of Interest (b) Number of Periods Rate Rents Invested Involved а. 9% 28 28 Annually % b. 10% 14 28 Semiannually C. 12% 6 24 Quarterly %
For each of the following cases, indicate (a) to what rate columns, and (b) to what number of periods you would refer in looking up the interest factor. 1. In a future value of 1 table: Annual Number of Years Compounded (a) Rate of Interest (b) Number of Periods Rate Invested a. 11% Annually % b. 12% Quarterly % C. 12% 19 Semiannually % 2. In a present value of an annuity of 1 table: (Round answers to 1 decimal place, e.g. 458,58.1.) Number of Number of Annual Frequency of Years Rents (a) Rate of Interest (b) Number of Periods Rate Rents Invested Involved а. 9% 28 28 Annually % b. 10% 14 28 Semiannually C. 12% 6 24 Quarterly %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Time value of money:
The value of money changes over a period time. The value of money depends on the time period and interest rate.
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