Which of the Following Changes Would Increase the Present Value

question 82

Multiple Choice

Which of the following changes would increase the present value of a future payment?

• A)a decrease in the size of the payment
• B)a decrease in the certainty of the payment actually being received
• C)an increase in the amount of time that elapses before receiving the payment
• D)a decrease in the interest rate
• E)none of the above

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Definitions:

Boxplot

A graphical representation used in statistics that displays the distribution of data through their quartiles, highlighting the median and outliers.

Local Hospital

A healthcare institution providing patient treatment with specialized medical and nursing staff and medical equipment, typically serving a nearby geographic area.

Standard Deviation

The measure of the dispersion or variation in a set of numbers, indicating how widely individuals within a dataset are spread from the mean.

Variance

A measure of how spread out a set of data is, calculated as the average of the squared differences from the mean.