You are to receive $12,000 at the end of 5 years. The available yield on investments is 6%. Which table would you use to determine the value of that sum today?

 As the discount rate becomes higher and higher, the present value of inflows approaches

A. 0
B. minus infinity
C. plus infinity
D. need more information

An annuity may be defined as
A. a payment at a fixed interest rate.
B. a series of payments of unequal amount.
C. a series of yearly payments.
D. a series of consecutive payments of equal amounts.

 

You are to receive $12,000 at the end of 5 years. The available yield on investments is 6%. Which table would you use to determine the value of that sum today?
A. Present value of an annuity of $1
B. Future value of an annuity
C. Present value of $1
D. Future value of $1

As the interest rate increases, the present value of an amount to be received at the end of a fixed period

A. increases.
B. decreases.
C. remains the same.
D. Not enough information to tell.

As the time period until receipt increases, the present value of an amount at a fixed interest rate

A. decreases.
B. remains the same.
C. increases.
D. Not enough information to tell.

 To find the yield on investments which require the payment of a single amount initially, and which then return a single amount some time in the future, the correct table to use is

A. the present value of $1
B. the future value of $1
C. present value of an annuity of $1
D. (a) and (b) above.