Which One of the Following Will Increase the Present Value

question 51

Multiple Choice

Which one of the following will increase the present value of a lump-sum future amount to be received in 15 years?

• A)An increase in the time period
• B)An increase in the interest rate
• C)A decrease in the future value
• D)A decrease in the interest rate
• E)Changing to compound interest from simple interest

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Definitions:

Cultural Differences

The variations in the practices, customs, and behaviors of different societies or cultures.

Language Barriers

Communication obstacles that arise due to differences in language, affecting understanding and interaction between individuals.

Single-Strand

A single piece or element of something, often referring to a simple, unifaceted aspect of a larger issue or structure.

Grapevine

Informal communication channels within an organization, through which information and rumors circulate beyond official communication paths.