For a Given Interest Rate, as the Length of Time

question 126

Multiple Choice

For a given interest rate, as the length of time until receipt of the funds increases, the present value interest factor

• A) remains unchanged.
• B) changes proportionally.
• C) decreases.
• D) increases.

---

Definitions:

Perceptual Constancy

A psychological phenomenon in which the perception of an object remains unchanged despite variations in its presentation or viewing conditions such as lighting, angle, or distance.

Proximal Stimuli

The stimuli that directly interact with the senses, as opposed to distal stimuli which are objects and events in the environment that provide information for the proximal stimuli.

Distal Stimuli

Objects or events in the external world that provide the basis for the perception of our immediate environment, as opposed to the sensory inputs that they generate.

Detectable Input

A level of stimulus that is sufficient to be noticed or detected by the sensory systems.