Which One of These Will Increase the Present Value of a Set

question 32

Multiple Choice

Which one of these will increase the present value of a set amount to be received sometime in the future?

• A) Increase in the time until the amount is received
• B) Increase in the discount rate
• C) Decrease in the future value
• D) Decrease in the interest rate
• E) Decrease in both the future value and the number of time periods

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Definitions:

Power of Attorney

A legal document that allows one person (the principal) to appoint another person (the agent) to act on their behalf in legal matters or transactions.

Second Restatement

A compendium of the common law of the United States, revising principles in various areas of law like contracts and torts.

Third Restatement

Refers to the updated summaries of common law in the United States, specifically referring to restatements on various legal subjects by the American Law Institute.

Actual Authority

The explicit power granted by a principal to an agent to act on their behalf.