The Shorter the Time Until a Payment The

question 28

Multiple Choice

The shorter the time until a payment the:

• A) higher the present value.
• B) lower the present value because time is valuable.
• C) lower must be the interest rate.
• D) higher must be the interest rate.

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Definitions:

Ordovician

A period in the Earth's geologic timescale that occurred about 488 to 443 million years ago, distinguished by significant biological diversification.

Cretaceous

The geological period between 145 and 66 million years ago, noted for the dominance of dinosaurs and the appearance of flowering plants.

Extinction Event

A significant loss of biodiversity occurring rapidly due to factors like climatic changes, habitat destruction, or the impact of humankind.