The Net Present Value of $1,000 Received in the Future

question 5

Multiple Choice

The net present value of $1,000 received in the future would

• A) decline if the $1,000 were received sooner.
• B) increase if the delivery date for the $1,000 were set farther into the future.
• C) decrease if the interest rate fell.
• D) decrease if the interest rate rose.

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Definitions:

Posterior

Anatomical term meaning toward the back of the body. Also called dorsal.

Body Structure

Refers to the organization and arrangement of physical parts of organisms, including their systems, organs, and tissues.

Brachial

Pertaining to the arm, specifically the part of the upper limb between the shoulder and the elbow.

Thigh

The part of the human leg between the hip and the knee, consisting of several muscles including the quadriceps and hamstrings.