The Present Value of an Expected Future Payment ________ as the Interest

question 37

Multiple Choice

The present value of an expected future payment ________ as the interest rate increases.

• A)falls
• B)rises
• C)is constant
• D)is unaffected

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Definitions:

Co-own

To have joint ownership or share the possession of a property or item with one or more parties.

Voluntary Association

An organization created by individuals who voluntarily unite to pursue a common interest or goal without necessarily seeking profit.

Business Profit

The financial gain realized when the revenue generated from business activities exceeds the expenses, taxes, and costs associated with sustaining the business operations.

S Corporations

Corporations that elect a special tax status to pass income, losses, deductions, and credit through to their shareholders for federal tax purposes.