The Present Value of a Future Amount of Money Will

question 269

Multiple Choice

The present value of a future amount of money will be greater the

• A) greater the interest rate.
• B) greater the amount of time before the future payment is received.
• C) lower the interest rate.
• D) greater the rate of the expected rate of inflation.

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Definitions:

Profit Margins

The percentage of revenue that remains as profit after all expenses have been subtracted.

Company Decisions

Involves choices made by a business entity's leadership that affect its operations, strategies, and future direction.

Loyal Customer

An individual who repeatedly purchases products or services from the same company instead of switching to competitors.

Material Needs

The physical requirements necessary for an individual to maintain a healthy, viable existence.