The Present Value of a Future Amount Will Decrease If

question 56

Multiple Choice

The present value of a future amount will decrease if _________________.
I.the discount rate increases
II.the amount occurs closer in time
III.the compounding frequency increases
IV.inflation increases

• A)I and II only
• B)I and III only
• C)II and III only
• D)III and IV only
• E)I, III and IV only

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Definitions:

Ranking Scales

A method of data collection that involves ordering items or entities according to certain criteria, such as preference or importance.

Likert Scales

A psychometric scale commonly used in questionnaires to measure respondents' attitudes, opinions, or perceptions by offering a range of fixed responses.

Numbered Continuum

A sequential arrangement of items or values where each entry is numbered, indicating its position within a linear progression or scale.

Problem Statement

A concise description of an issue to be addressed or solved, typically outlining the context and significance.