Peter invests $100,000 in a 3-year certificate of deposit earning 3.5% at his local bank. Which time value concept would be used to determine the maturity value of the certificate?

a. Present value of one.
b. Future value of one.
c. Present value of an annuity due.
d. Future value of an ordinary annuity.


Answer: b. Future value of one.

Business

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Which of the following accurately describe reasons for investing in mutual funds?

I. to effectively control the timing of capital gains for tax purposes II. to achieve portfolio diversification at a reasonable cost III. to invest in unfamiliar sectors or geographic regions IV. to outperform the market A) I and IV only B) II and III only C) I, II and III only D) I, II, III and IV

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Indicate whether the statement is true or false

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Jean is examining variation on a control chart. One of the machines was misaligned and is operated by an inexperienced worker. The variation caused by these factors is caused by ____

a. assignable causes b. in statistical control causes c. common causes d. in control causes

Business