Which of the Following Changes Would Increase the Present Value

question 84

Multiple Choice

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

• A)A decrease in your salary
• B)An increase in the time until the payment is made
• C)A decrease in the size of the payment
• D)A decrease in the interest rate

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Definitions:

Tsunami

A series of ocean waves caused by underwater disturbances such as earthquakes, volcanic eruptions, or landslides, known for their devastating impact on coastal areas.

Landslides

The movement of rock, earth, or debris down a slope due to gravity.

Thrusting

A type of geological fault movement where one block of the earth's crust is pushed up over another.

Strike-Slip Fault

A type of fault where the movement of blocks along the fault is horizontal, parallel to the fault line.