1 All of the following are factors needed when calculating t

1. All of the following are factors needed when calculating the future value of money except

A. the principal amount

B. the maturity value

C. the interest rate

D. the number of periods

2. Sensitivity analysis is a technique that? ________.

A. sets the budgets of alternative investment opportunities

B. evaluates the different available investment options

C. shows how results differ when underlying assumptions change

D. analyzes the effect of an investment on? workers\' morale

Solution

1. Answer is option B. the maturity value

Future value = present value *(1+ interest rate) ^ number of periods

2. Answer is option C. shows how results differ when underlying assumptions change

Sensitivity analysis is a technique used to determine how independent variable values will impact a particular dependent variable under a given set of assumptions.