The Present Value of a Future Sum Decreases as Either

question 82

True/False

The present value of a future sum decreases as either the discount rate or the number of periods per year increases, other things held constant.

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Definitions:

Incidental Damages

Expenses or costs that arise indirectly from a breach of contract or other wrongdoing, which may be recoverable under the law.

Breach

The violation or non-fulfillment of a legal obligation, contract, or agreement.

Expenses

Monetary outlays or expenditures that individuals, businesses, or other entities incur during their operations, which may include costs related to goods, services, operations, or investments.

Cover

Protection or security provided by an insurance policy; or in finance, to deal with a position by buying or selling securities.