Which of the Following Changes Would Increase the Present Value

question 35

Multiple Choice

Which of the following changes would increase the present value of a future payment?

• A)an increase in the size of the payment
• B)an increase in the time until the payment is made
• C)an increase in the interest rate
• D)All of the above are correct.

---

Definitions:

Carl Rogers

An influential American psychologist who founded client-centered therapy and emphasized the importance of a supportive, non-judgmental therapeutic environment.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Lithium Carbonate

A drug frequently given to people suffering from bipolar disorder.

Mania

A mental health condition characterized by periods of extreme mood elevation, energy, and behavior that is unusually intense and can impair daily functioning.