Future value can be found if the interest rate (i), the number of periods (n), and the present value (p) are known.
Answer the following statement true (T) or false (F)
True
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The first step in developing your financial plan is
A) establish your financial goals. B) pay off all your credit cards. C) buy a cool car then begin saving money. D) get a good job.
The probability density function f(x) of a random variable X that has a uniform distribution between a and b is
a. (b + a)/2 c. (a - b)/2 b. 1/b - 1/a d. None of these choices.
When a business was declared bankrupt, it had creditors' claims totaling $410,640. After all assets were sold and bankruptcy costs paid, $145,650 was left to pay creditors' claims. How much would a creditor receive if the creditor's claim was for $65,000?
A Brazilian firm owes you $2,000,000, payable in three months, however, they insist on paying in Brazilian Reals. The current spot exchange rate is $0.59305/Real. The three-month forward exchange rate is $0.61255/Real
How many Real should you demand in a forward contract to receive $2,000,000 in three months to hedge the exchange rate risk? A) 1,186,100 Real B) 3,372,397 Real C) 3,265,040 Real D) 1,225,100 Real