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What happens to the fraction as the denominator decreases?
The value of the fraction increases.
What does it mean for variables to show correlation?
A positive correlation coefficient means that as the value of one variable increases, the value of the other variable increases; as one decreases the other decreases. A negative correlation coefficient indicates that as one variable increases, the other decreases, and vice-versa.
What is direct and indirect proportion?
Direct Proportion-As one of the value increases,so does the other. Indirect Proportion-As one value increases,the other decreases. ~Hannah^^
Can Km be a negative value?
No the Km can never be a negative value. The Km increases or decreases with temperature. An incorrect calculation can produce a negative value.
What is the present value of 3 year annuity of 100 if discount rate is 6%?
The formula for the present value of an annuity due. The present value of an annuity due is used to derive the current value of a series of cash payments that are expected to be made on predetermined future dates and in predetermined amounts.
As the discount rate increases without limit the present value of a future cash flow?
Decreases.... The formula is PV = $1 / (1 + r)t PV = Present Value r = discount rate Because 1/r continues to get smaller as r increases, thus resulting in an exponentially smaller Present Value.
What happens to the present value of an annuity when the interest rate decreases?
it increases
The present value of a perpetuity decreases when what decreases?
When the value of money decreases (inflation)
Present value of the dollar?
8-9 cents Increases with lower interest rates and decreases with longer periods of time.
What happened to the value of gravity when the value of distance increases?
it decreases
What is the relationship between interest rate and discount rate?
When interest rates increases currency value appreciates while when interest rate decreases so the currency rates depreciates
Why the share value increases or decreases?
Stock split
What happens to the fraction as the denominator increases?
the entire fraction decreases
What is numerical pattern that increases or decreases at a constant rate or value?
An arithmetic sequence is a numerical pattern where each term increases or decreases by a constant value. This constant value is called the common difference.
What is normally used as the discount rate in the net present value method?
the net present value as determined by normal discount rate is 10%
What happens to the fraction as the denominator decreases?
The value of the fraction increases.
As the discount rate becomes higher and higher the present value of inflows approaches what?
As, the present value of future cash flows is determined by the discount rate, so increase or decrease in the discount rate will affect the present value. Discount rate is simply cost or the expense to the company,so in simplest terms, discount rate goes up, cost goes up,so this will lower the present value of cash flows. Assumes a discount rate of 5%,to discount $100 in one years time: Present Value=$100 * 1/(1.05) =$95.24 Ok,as you say,if the discount rate becomes higher,let's say 8%: Present Value=$100 * 1/(1.08) =$92.6 so, the higher the discount rate, the lower the present value.
