Which of the following statements is correct? If the discount rate falls, then the present...
70.2K
Verified Solution
Link Copied!
Question
Finance
Which of the following statements is correct? If the discount rate falls, then the present value of a potential investment would also fall The present value of multiple cash flows is greater than the sum of those cash flows The more frequently the interest payments are compounded, the smaller the future value of $1 to be invested today If Bank A pays interest on a monthly basis and Bank B pays the same interest rate, but on a daily basis, then investing $1,000 in Bank B will result in a higher future value compared to investing the same amount in Bank A Compound interest increases as the number of years decreases
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
