1. With respect to the time value of money, the future value relationship to the rate of interest is best described as:
a. none of the answers is correct
b. logarithmic
c. a negative relationship
d. a positive relationship
e. no relationship
2. Chris Mayson has funded a retirement investment with $250,000 earning a return of 5.75 percent. What is the value of the payment that he can receive in perpetuity? (Round the number.)
a. $14,375
b. $12,150
c. $15,250
d. none of the answers is correct.
e. $14,900