Which of the Following Is True of the Present Value

question 7

Multiple Choice

Which of the following is true of the present value of an investment?

• A)The higher the rate of interest the higher will be the present value of an investment.
• B)Present value of an investment is an increasing function of the time period of investment.
• C)The longer the time period of investment the lower will be its present value.
• D)Present value falls less than proportionately with the length of the delay in payment.

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Definitions:

Compromise

An agreement or settlement of a dispute that is reached by each side making concessions.

Sacrifices

Forgoing of personal desires or assets for the benefit of others or for a greater purpose.

Employed Wives

Women who are married and actively engaged in the workforce.

Depression

Depression is a medical condition characterized by persistent sadness, lack of interest or pleasure in activities, and can severely impact daily functioning.