Example MCQ Test 1 - present values increase as the...

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You need $2,000 to buy a new stereo for your car. If you have $800 to invest at 5% compounded annually, how long will you have to wait to buy the stereo? (1 point) a. 6.58 years b. 8.42 years c. 14.58 years d. 15.75 years e. 18.78 years Which of the following statements is/are accurate? All else the same, ________. I.
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Unformatted text preview: present values increase as the discount rate increases> II. present values increase the further away in time the future value III. present values are always smaller than future values when both r and t are positive (1 point) a. I only b. I and II only c. II only d. III only e. II and III only...
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