If the Interest Rate Is Positive, the Present Value of $10

question 212

Multiple Choice

If the interest rate is positive, the present value of $10 to be received in the future is

• A)less than $10.
• B)equal to $10.
• C)more than $10.
• D)Any of the above is possible, depending on the interest rate and when the payment is to be received.

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Definitions:

Groundwater

Water that fills the spaces in underground soil and rock, supplying wells and springs.

Lakes

Large bodies of water surrounded by land, usually freshwater and derived from glacial activity, tectonic movements, or old river beds.

Snake River Plain

A geographic feature in the U.S. characterized by a wide, flat valley cutting through Idaho, known for its volcanic geology.

Groundwater

Water that is located beneath the earth's surface in soil pore spaces and in the fractures of rock formations.