Which One of the Following Will Increase the Present Value

question 33

Multiple Choice

Which one of the following will increase the present value of a lump sum future amount? Assume the interest rate is a positive value and all interest is reinvested.

• A) Increase in the time period
• B) Increase in the interest rate
• C) Decrease in the future value
• D) Decrease in the interest rate
• E) None of the above

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Definitions:

Specific Performance

A legal remedy requiring a party to perform their obligations under a contract, typically used when monetary damages are insufficient.

Almetals Inc.

A company specializing in the processing and distribution of precision metal slits, coils, and sheets, primarily for the automotive and manufacturing industries.

Unique Goods

Unique goods are products or items that are distinct due to their rare characteristics, custom features, or individual qualities, making them one-of-a-kind.

Cover

A buyer’s right to substitute goods for those due under a sales or lease agreement when the seller provides nonconforming goods.