As the Interest Rate Increases,the Present Value of a Future

question 54

Multiple Choice

As the interest rate increases,the present value of a future payment

• A) increases.
• B) decreases.
• C) does not change.
• D) approaches infinity.

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Definitions:

Desired Outcome

The specific result or objective that an individual or organization aims to achieve through a set of actions or strategies.

Participate

To take part or become involved in an activity or event.

Attained Standards

Benchmarks or levels of performance that have been successfully achieved or realized.

Variances

The difference between expected and actual performance, used in accounting and finance to track deviations from budgets.