0
What else can I help you with?
If the interest rate is zero the future value interest factor equals?
1.0
The number of payments in future cash flow has what relationship to interest rate?
The number of payments is directly related to the interest rate.
What happens to the future value of money when the inflation rate exceeds the interest rate?
it increases
Suppose that inflation is -3 per year and it is expected to continue at that rate in the future If the nominal interest rate is 0 per year then what is the real interest rate?
-3
What is the future value of an investment of 500 today, with an interest rate of 5 per year, compounded annually, after 5 years?
The future value of a 500 investment with a 5 annual interest rate compounded annually after 5 years is approximately 638.14.
The present value of future cash flows has what relationship to interest rate?
The present value of future cash flows is inversely related to the interest rate.
If the interest rate is zero the future value interest factor equals?
1.0
If the interest rate is 0 the future value interest factor equals what?
If the interest rate is 0, the future value interest factor equals 1. This is because, without interest, any amount of money will remain the same over time; thus, the future value of any present amount will be equal to itself. Therefore, regardless of the time period, the future value remains unchanged when the interest rate is 0%.
The number of payments in future cash flow has what relationship to interest rate?
The number of payments is directly related to the interest rate.
What happens to the future value of money when the inflation rate exceeds the interest rate?
it increases
How do you hedge against declining interest rate?
If you believe that interest rates will be going down in the future, the best thing to do is to invest now in a product that allows you to lock in an interest rate long term. You may not have easy access to the money, but you will be earning a high interest rate compared to what will be available in the future if you are correct.
Suppose that inflation is -3 per year and it is expected to continue at that rate in the future If the nominal interest rate is 0 per year then what is the real interest rate?
-3
Matt wants to take out a simple interest loan on a car priced at 14289 The interest rate is 3.5 percent for 5 years How much will he pay in interest during the term of the loan?
2500.58 (A+)
When taking a long position in a Eurodollar Future Contract why is it said that an interest rate is locked in if the investor can lose money when the interest rate increases?
Due to tthe portion of the pie the others are ttaking the interest rate will decrease.
What is the Difference between interst rate swap and interest rate future?
The simple answer is that an Interest Rate Swap (IRS) is Over The Counter (OTC) while a Futures Contract is Exchange Traded.
What is the relationship between interest rate with present value and future value?
direct
What happens to the future value of money when the inflation exceeds the interest rate?
it will increase
