As Long as the Interest Rate Is Greater Than Zero

question 256

Multiple Choice

As long as the interest rate is greater than zero, the present value of a single sum will always:

• A) Increase as the interest rate increases.
• B) Be less than the future value.
• C) Decrease as the period of time decreases.
• D) Equal the future value if the time period is one year.
• E) Increase as the number of periods increases.

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Definitions:

Periderm

A protective tissue in plants, making up the outer layer of the bark in woody plants.

Yolk Sac

An extra-embryonic membrane in early embryonic development that provides nutrition to the developing embryo.

Prostate Gland

A gland in males located below the bladder surrounding the urethra, secreting fluid that is a component of semen.

Spermatic Cord

A bundle of fibers and tissues passing through the abdominal wall and into the testes, involved in blood supply, waste removal, and sperm delivery.