Bus fin ch.5 concept

Starting to invest early for retirement increases the benefits of compound interest.

• True

• False

Starting to invest early for retirement reduces the benefits of compound interest.

• True

• False

A time line is meaningful even if all cash flows do not occur annually.

• True

• False

A time line is not meaningful unless all cash flows occur annually.

• True

• False

Time lines can be constructed in situations where some of the cash flows occur annually but others occur quarterly.

• True

• False

Time lines cannot be constructed in situations where some of the cash flows occur annually but others occur quarterly.

• True

• False

Time lines can be constructed for annuities where the payments occur at either the beginning or the end of the periods.

• True

• False

Time lines cannot be constructed for annuities unless all the payments occur at the end of the periods.

• True

• False

Some of the cash flows shown on a time line can be in the form of annuity payments while others can be uneven amounts.

• True

• False

Some of the cash flows shown on a time line can be in the form of annuity payments but none can be uneven amounts.

• True

• False