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.

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Definitions:

Intrinsic Rewards

The personal satisfaction and pleasure derived from accomplishing a task or learning new skills, independent of external rewards.

Extrinsic Motivation

Motivation driven by external rewards, such as money or praise, rather than by the inherent enjoyment or interest in the task itself.

Intrinsic Motivation

The drive to engage in activities for the inherent satisfaction or pleasure derived from the activity itself, rather than for some external reward.

Performance

The act of executing a task or function, often measured against pre-set standards of accuracy, completeness, and speed.