Question 1
1 out of 1 points
Which statement
is most true
regarding the
relationship
between
discounting and
compounding?
Selected
Answer:
Discounting is the inverse of compounding.
discounting when we are finding a present value and we refer to
compounding when we are finding the future value of some cash
flows.
Correct
Answer:
Discounting is the inverse of compounding.
discounting when we are finding a present value and we refer to
compounding when we are finding the future value of some cash
flows.
Question 2
1 out of 1 points
What will $5,000
invested for 10
years at 8 percent
compounded
annually grow to?
(round to the
nearest dollar)
Selected Answer:
Correct Answer:
Question 3
1 out of 1 points
Calculate the
future sum of
$1,000 given that
it will be held in
the bank for five
years and earn 10
percent
compounded
semiannually.
(round to the
nearest dollar)
Selected Answer:
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Question 4
1 out of 1 points
Which statement
is most correct
regarding the
difference
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 Summer '11
 JimBrau
 Compounding, $5,000, $100,000, 10 percent, 10 years, 8 percent

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