An Increase in the Time to the Promised Future Payment

question 56

Multiple Choice

An increase in the time to the promised future payment ________ the present value of the payment.

• A)decreases
• B)increases
• C)has no effect on
• D)is irrelevant to

---

Definitions:

Operations

The day-to-day activities involved in managing and running a business or organization efficiently.

Total Cost

The complete cost of producing or acquiring goods or services, including direct, indirect, fixed, and variable expenses.

Finance Company

A business that makes loans to individuals and companies, aside from banks and other traditional lenders.

Service Fee

A charge added to a customer's bill for the provision of services by a company or professional.