Utility refers to Group of answer choices the total of your spending for the year the satisfaction you receive from purchasing something. how much money you receive during the year the value of your investments at any given time
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- if you were to invest your money which term will you use to compute for the interest in your investment: exact or approximate time?The current income is ? The investor would experience a Gain, Loss, or Neither? The total return on this investment is $?Life inHow would youdetermine the amount topurchase? Should it be based onyour current financial situation orwhere you see yourself in thefuture?
- 4. What is present worth? Group of answer choices Difference of future worth and interest Amount of money with the interest The final amount of money Sum of future worth and interestWhat do you understand by the present value of money? Group of answer choices A. Amount borrowed or deposited B. Maximum that can be deposited C. Sum of deposit and interest D. Another name for the futureSelect all of the time value of money factors that are known in a NPV assessment. O Present value of single-sums O Present value of annuities O Interest rate Number of periods O Future value of single-sums O Future value of annuities
- A life insurance policy is a financial asset, with the premiums paid representing the investment’scost.a. How would you calculate the expected return on a 1-year life insurance policy?b. Suppose the owner of a life insurance policy has no other financial assets—the person’sonly other asset is “human capital,” or earnings capacity. What is the correlation coefficientbetween the return on the insurance policy and the return on the human capital?c. Life insurance companies must pay administrative costs and sales representatives’commissions; hence, the expected rate of return on insurance premiums is generallylow or even negative. Use portfolio concepts to explain why people buy life insurancein spite of low expected returns.FUTURE VALUE FORMULA Please provide the formula for finding the Future Value of Money.Which of the following is not an advantage of the average rate of return method? a.includes the amount of income earned over the entire life of the proposal b.takes into consideration the time value of money c.emphasizes accounting income d.easy to use
- Which of the following methods consider the time value of money? A. payback and accounting rate of return B. payback and internal rate of return C. internal rate of return and accounting rate of return D. internal rate of return and net present value. Match each sentence to the correct concept. a) The amount an investment is worth after one or more time periods is referred to as_______________b) The process of finding the present value of some future amount is called_________________.c) Calculating the present value of a future cash flow to determine its value today isknown as _________________.d) Interest earned on the principal and maybe for a number of years may be called______________e) ___________ is the process of accumulating interest in an investment over time toearn more interest.f) The interest earned on both the initial principal and the interest reinvested fromprior periods is referred to as ______ _______.The present value of an investment's future cash flows divided by its initial cost is the: O Net present value. O Internal rate of return. O Average accounting return. O Profitability index. O Payback period.
