Assuming a 6% Rate of Return, How Does the Present

question 90

Multiple Choice

Assuming a 6% rate of return, how does the present value of an amount to be received two years from today compare to the present value of the same amount to be received three years from today?

• A)The present value of the amount to be received in two years is greater than the present value of amount to be received three years from today.
• B)The present value of the amount to be received in two years is lesser than the present value of amount to be received three years from today.
• C)The present values of the two amounts are equal.
• D)It is impossible to tell unless the actual amount to be received is known.

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