Time Of Value Questions1 Which Of The Following Statements I

Time Of Value Questions1 Which Of The Following Statements Is Correc Time of Value questions: 1- Which of the following statements is CORRECT? A time line can show some of the cash flows that appear in the form of annuity payments, but none can be uneven amounts. To visualize a complex problem prior to doing actual calculation, time lines are very useful. Time lines cannot be constructed if an investment offers some of its cash flows annually and some quarterly. Time lines can only be constructed for annuities where the payments occur at the end of the periods. 2- An investment offers 6.5% nominal rate of interest, compounded quarterly. Which of the following statements is CORRECT? The periodic rate of interest is 6.5% and the effective rate of interest is greater than 6.5%. The periodic rate of interest is 3.25% and the effective rate of interest is 6.5%. The periodic rate of interest is 3.25% and the effective rate of interest is greater than 6.5%. The periodic rate of interest is 1.625% and the effective rate of interest is greater than 6.5%. 3- You plan to invest some money in a bank account. Which of the following banks provides you with the highest effective rate of interest? Bank 1; 4.10% with annual compounding. Bank 2; 4.0% with monthly compounding. Bank 3; 4.0% with annual compounding. Bank 4; 4.0% with quarterly compounding. Bank 5; 4.0% with daily (365-day) compounding. 4- Which of the following statements is CORRECT? You are considering to invest in an annuity. You conclude that the present value of a 4-year, $400 ordinary annuity will exceed the present value of a 4-year, $400 annuity due. You are investing in a fund that offers a nominal annual rate of 5%. Its effective rate will never be less than 5%. You are investing in a fund that offers annual interest payments. Its effective, periodic, and nominal rates of interest will all be different. You are investing in a fund that offers a nominal rate of 4% with semi-annual payments. Its effective rate that is smaller than 4%. Revenue of Celine, Inc. was $400,000. If sales grow at 5% per year, how large will the revenue be 6 years later? $424,000 $520,000 $535,290 $536,- How much would $20,000 due in 30 years be worth today if the discount rate were 5%? $666.67 $4,627.55 $86,438.85 $571,428.- In ten years, Scuty Inc.'s EPS grew from $1.05 to $2.43. What is the growth rate in earnings per share (EPS) over the 10-year period? 2.31% 8.75% 11.23% 13.8% 8- Alacia has $4,000 invested in a bank that pays 9% annually. How long will it take for his funds to double? 8....- You want to buy a luxury car 10 years from now, and you plan to save $6,000 per year, beginning one year from today. You will deposit your savings in an account that pays 4% interest. How much will you have just after you make the last deposit, 10 years from now? $60,000.00 $62,400.00