For a Given Future Value, the Higher the Interest Rate

question 143

True/False

For a given future value, the higher the interest rate is, the higher the present value will be.

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Definitions:

Finance Company

A business that provides loans to individuals or other businesses and may also offer other financial services such as leasing, credit cards, or mortgage services.

Joint Payees

Individuals or entities who are designated in a financial instrument, such as a check, as the combined recipients of the payment.

Order

(1) An order to appear and bring specified documents. (2) A binding decision issued by an ALJ after a hearing.

Shelter Principle

The principle which holds that when an item is transferred, the transferee acquires all the rights the transferor had to the item.