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Unformatted text preview: money to be received in the future? A. A period of recession. B. When current interest rates are different from expected future rates. C. When there is no risk of nonpayment in the future. D. When idle money can earn a positive return. 6) As the time period until receipt increases, the present value of an amount at a fixed interest rate 7) Mr. Nailor invests $5,000 in a money market account at his local bank. He receives annual interest of 8% for 7 years. How much return will his investment earn during this time period? A. $2,915 B. $8,570 C. $6,254 D. $3,570 8) 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?...
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- Winter '11