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Does the present value of money increase as the number of years before the payment is received increases?
Wiki User
∙ 16y ago
No, it should decrease, assuming the interest rate is the same.
Wiki User
∙ 16y ago
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Do factors like down payment and the security deposit that has to be paid upfront on an asset have a major influence on a lease or loan option?
Large down payments or security deposits will increase the net present value (NPV) of the loan or lease option. If either the lease or the loan requires a large security deposit or down payment, this will increase the NPV of that option making the other option more appealing. This is due to the devaluing of money over time. If a large down payment is required upfront, that amount of money is not devalued. Payments, as time goes by, are less valuable.
Which of the following factors will change when interest rates change?
The present value of a bond's payment
Is it beneficial to calculate a mortgage payment for the future?
It is always beneficial to calculate a mortgage payment for the future. Being aware of financial obligations, especially one as large a a mortgage payment, whether in the present or future, is a good step toward financial security.
Is there an insurance you can purchase to protect your mortgage payment in case you lose your job?
Yes, there is depending I believe that you lost your job and did not quit. Through your present mortgage lender.
What are the chances of you qualifying for a mortgage?
Those chances depend on your personal circumstances such as:employment historyincomelength of employment at present employerother debtscredit recordcost of the propertycondition of the propertyability to pay a down payment
As the interest rate increases the present value of an amount to be received at the end of a fixed period?
increases
Does present value increase or decrease when the interest rate increases?
decrease
Why the mass of the person increases in space ship?
Mass does not increase in a spaceship. Mass increases infinitesimally according to the speed of the body. This increase does not have any effect until light speed is closely approached. Which is presently impossible with our present technology.
Dry ice is sealed in a plastic bag as the temperature increases what does the amount of gas present in the bag do?
The amount of gas present in the bag will increase as the dry ice sublimates.
What is the present value of a 30 year annuity with payments of 800 per year if interest rates are 12 percent annually?
The PV of a 30 year 800 per year annuity is 6,444 if the payment is received at the end of the year and 7,217 is the payment is received at the start of the year
Does the speed of sound increase of decrease or remain the same when air temperature increases?
decrease because when temperature is low water is present in atmosphere which let sound to go fast
Which semiconductor have positive temperature coefficient?
With the increase in temperature if the resistance increases or the current in the circuit decreases then it is said to be have positive temperature coefficient .But in semi-conductors with the increase in temperature the electrons present in the valance band are excited and they would enter the conduction band for conduction . As the no. of charge carriers always increase in a semi-conductor , implies that the current always increases with the increase in temperature so the semi-conductor can never have positive temperature coefficient
What is the third person plural present tense of the verb increase?
The third person plural present tense of the verb increase is (they) increase.
Is the payment mortgage on the first of the month covers for that month?
The payment due for the 1st is for present month.
What happens to NPV if the cost of capital changes?
The cost of capital is inversely proportional to the NPV. As capital costs increase (i.e. the interest rate increases), NPV decreases. As capital costs decrease (i.e. the interest rate decreases), NPV increases. You can see the relationship in the following equation: NPV = a * ((1+r)^y - 1)/(r * (1+r)^y) Where: NPV = Net Present Value (The present value of a future amount, before interest earnings/charges) a = Amount received per year y = Number of years r = Present rate of return
If the inflation premium for a bond goes up the price of the bond?
The price of the bond decreases; the inflation premium would increase the market interest rate, which in bond valuation is located in the denominator, and the coupon payment rate is located in the numerator. When calculating the NPV of future coupon payments, as the denominator or market interest rate + inflation premium increases, the Net Present Value of future coupon payments decreases and the overall value of the bond decreases as well. The price of the bond decreases; the inflation premium would increase the market interest rate, which in bond valuation is located in the denominator, and the coupon payment rate is located in the numerator. When calculating the NPV of future coupon payments, as the denominator or market interest rate + inflation premium increases, the Net Present Value of future coupon payments decreases and the overall value of the bond decreases as well.
What is the present perfect tense of received?
Received is the past tense and past participle of receive. The present perfect tense of receive is have/has received.I/We/You/They have receivedHe/She/It has received
