A Change in the Interest Rate

question 45

Multiple Choice

A change in the interest rate:

• A) has a smaller impact on the present value of a payment to be made far into the future than on one to be made sooner.
• B) will not make a difference in the present values of two equal payments to be made at different times.
• C) has a larger impact on the present value of a payment to be made far into the future than on one to be made sooner.
• D) has a larger impact on the present value of a bigger payment to be made far into the future than on one of lesser value.

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Definitions:

Nonsignificant

A statistical term indicating that the results of an analysis do not show evidence to reject the null hypothesis, suggesting that any observed effect could be due to chance.

Insignificant

A term used in statistics to describe a result that fails to provide enough evidence to reject the null hypothesis.

Statistical Concept

A statistical concept encompasses principles and theories related to collecting, analyzing, interpreting, and presenting data in order to make informed decisions or conclusions.

Within-Subjects Research Design

Research design in which each participant appears in all levels or categories of the independent variable.