FIN 3101 T/F Ch 3 Complete Guide
A lump sum can be a one-time earlier but not a one time later cash flow ️false - can be one or the
other
FV's are earlier values and PV's are later values ️false - FVs are later, PVs are earlier
PVs are leftward on a timeline and FVs are rightward on a t...
FIN 3101 T/F Ch 3 Complete Guide
A lump sum can be a one-time earlier but not a one time later cash flow ✔️false - can be one or the
other
FV's are earlier values and PV's are later values ✔️false - FVs are later, PVs are earlier
PVs are leftward on a timeline and FVs are rightward on a timeline ✔️true
FVs represent the amount that an earlier amount will grow into ✔️true
FVs represent what you need to invest later to have it groq into a specified earlier amount ✔️false
compounding is the process used to find a PV ✔️false
what is 'discounted' from the FV is the interest part to arrive at the PV ✔️true
with compound interest, interest is earned every period on that period's starting amount ✔️true
ceteris paribus, as a debtor and for the same annual interest rate, you would prefer simple interest to
compound interest ✔️true
the right hand side variables in the discount rate formula represent the 3 key factors determining stock
prices ✔️false
ceteris paribus, the FV and number of periods are inversely related ✔️false
the number of years it would take an investment to double is approx. equal to the annual interest rate /
72 ✔️false - 72 / ann interest rate
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller CertifiedGrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
