Which One of the Following Will Produce the Highest Present

question 63

Multiple Choice

Which one of the following will produce the highest present value interest factor?

• A)6 percent interest for five years
• B)6 percent interest for eight years
• C)6 percent interest for ten years
• D)8 percent interest for five years
• E)8 percent interest for ten years

Comprehend the role of mutual funds as financial intermediaries.

Understand how corporations finance their operations and the implications of stock resales.

Calculate and interpret the price-earnings ratio of a company's stock.

Distinguish between financing through bonds and stocks for corporations.