1 a two-year investment of 200 is made today at an annual, Ask an Expert

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1. A two-year investment of $200 is made today at an annual interest rate of 6%. Which of the following statements is true?

The PV is $178.00.

The FV is $224.00.

The FV is $224.72.

This question is irrelevant because there are no two-year investments that earn an average of 6% per year.

2. A two-year investment of $200 is made today at an annual interest rate of 6%. Which of the following statements is true?

The future value would be greater if the interest rate was higher.

The present value would be greater if the interest rate was higher.

The future value would be greater if the interest rate was lower.

The future value does not change as the interest rate changes.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92865278

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