As the Interest Rate Decreases,the Present Value of an Amount

question 98

Multiple Choice

As the interest rate decreases,the present value of an amount to be received at the end of a fixed period:

• A) increases.
• B) decreases.
• C) remains the same.
• D) not enough information to tell.

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Definitions:

Total Contributions

The total sum of money given or invested in a particular context or over a period of time.

Ratio

The relationship between two numbers revealing how many times one can be contained within or contain the other.

Penetrated

Successfully entered or accessed an area or market, often used in business contexts.

Under-Exploited

Resources or opportunities not fully utilized or maximized to their potential benefit.