Future Values Are

question 28

Multiple Choice

Future values are:

• A)the inverse of present values.
• B)amounts that can be borrowed today in exchange for future payment.
• C)the negative of present values.
• D)are the annuity values divided by the number of years.

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Definitions:

Own Stock

Refers to the possession of shares in a company, indicating partial ownership.

Corporate Bonds

Debt securities issued by corporations to raise capital, with promise to repay the principal amount along with specified interest rates over a period.

Real Return

The return on an investment after adjusting for inflation, reflecting the actual purchasing power gained or lost.

Inflation

The speed at which the overall price level for goods and services increases, leading to a decrease in buying power.