If the Interest Rate Is Positive, the Present Value of $10

question 212

Multiple Choice

If the interest rate is positive, the present value of $10 to be received in the future is

• A)less than $10.
• B)equal to $10.
• C)more than $10.
• D)Any of the above is possible, depending on the interest rate and when the payment is to be received.

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Definitions:

Relearning

The process of memorizing information that was previously learned and then forgotten, which typically takes less time than the initial learning.

Recognition

The cognitive process of identifying and acknowledging the familiarity of an object, concept, or piece of information.

Recognition

The cognitive process of identifying a familiar object, concept, or piece of information from previous experiences or encounters.

Recall

The ability to retrieve and reproduce information from memory that was previously learned.