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.

---

Definitions:

P(B)

The likelihood that event B will happen.

Drunk Drivers

Individuals who operate a vehicle while under the influence of alcohol, significantly increasing the risk of accidents and impairments in judgement and coordination.

Proportion

A part, share, or number considered in comparative relation to a whole.

Independent

Not influenced or controlled by others; acting freely.