Home › BBA Finance › Financial Management › Time Value of Money › A house listed at 400,000 today, with prices ris…
A house listed at 400,000 today, with prices rising 4% a year for six years, needs which calculation?
APast value
BPar value
CFuture value
DPresent value
Answer & Solution
Correct answer: C. Future value
1. Today's price is known.
2. The unknown sits six years ahead.
3. You solve for the future value.
_Source: OpenStax Principles of Finance 2e, Chapter 7, Time Value of Money I._
Related questions
Someone seeking the highest interest rate available should remember that investments are uThe time value of money is linked to inflation because rising prices:A single one-time receipt or payment of cash is described as a:Because of that, 200 at a given rate compounded quarterly rather than annually will grow tWhen compounding happens more often within a year, the interest income is received:Using it at 12% a year, money doubles in about:Using the same shortcut at 6% a year, money doubles in about:Using that shortcut, savings earning 9% a year will take about how long to double?