The Present Value of $100 to Be Paid in Two

question 2

True/False

The present value of $100 to be paid in two years is less than the present value of $100 to be paid in three years.

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Definitions:

Ratio

A relationship between two quantities indicating how many times the first number contains the second.

Relationship Between Variables

The way in which two or more variables are associated or interact with each other.

Strength

In statistics, often refers to the magnitude of a relationship between two variables.

Direction

The course along which someone or something moves, or is aimed or pointed, often described as vectors in mathematical contexts.