Which of the Following Changes Would Decrease the Present Value

question 35

Multiple Choice

Which of the following changes would decrease the present value of a future payment?

• A)an increase in the size of the payment
• B)an increase in the time until the payment is made
• C)a decrease in the interest rate
• D)All of the above are correct.

---

Definitions:

Semantics

The study of meaning in language, including the meanings of words, phrases, and sentences.

Syntax

The set of rules, principles, and processes that govern the structure of sentences in a given language, especially the arrangement of words and phrases.

Telegraphic Speech

Early speech phase in children where sentences are formed with essential words only, mimicking the succinctness of telegraph messages.

Availability Heuristic

A brainy shortcut grounded on the instant instances that strike a person's mind upon reflecting on a specific subject, notion, methodology, or judgement.