If the Interest Rate Remains Constant,the Present Value of a Dollar

question 45

Multiple Choice

If the interest rate remains constant,the present value of a dollar

• A) declines as the length of time increases before the dollar is received.
• B) is unaffected by the length of time before the dollar is received.
• C) rises as the length of time increases before the dollar is received.
• D) is calculated by dividing the interest rate by one, raised to the power of the number of years in the future the money will be received.
• E) is calculated by multiplying the interest rate per dollar by the number of dollars to be received.

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Definitions:

Price Discrimination

The strategy of selling the same product to different customers at different prices based on factors like willingness to pay, not costs.

Discrete Pricing

Discrete pricing refers to the practice of setting prices at fixed amounts rather than having a continuous range of prices, often seen in goods sold in whole units rather than continuous quantities.

Price Discrimination

A selling strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets.

Pricing Scheme

A strategy or formula used to determine the selling price of goods or services, taking into account costs, market conditions, and consumer demand.