Which One of These Statements Related to the Time Value

question 63

Multiple Choice

Which one of these statements related to the time value of money is correct? Assume a positive rate of interest.

• A)A dollar increases in value the further into the future it is received.
• B)The future value of an invested dollar is inversely related to the rate of interest.
• C)The present value of a dollar to be received in 1 year is directly related to the interest rate.
• D)A dollar received today is more valuable than a dollar received next month.
• E)A dollar invested today will increase in value in a linear manner if interest earned is reinvested.

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