If the Interest Rate Is Positive, the Present Value of a Stream

question 30

Multiple Choice

If the interest rate is positive, the present value of a stream of payments is

• A)greater than the sum of the actual payments over time.
• B)less than the sum of the actual payments over time.
• C)equal to the sum of the actual payments over time.
• D)unrelated to the stream of actual payments over time.

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Definitions:

Electroencephalography

A non-invasive method to record electrical activity of the brain using electrodes placed on the scalp.

Electrocardiography

The process of recording the electrical activity of the heart over a period of time using electrodes placed on the skin.

Electromyography

A procedure in which needle electrodes are inserted into some of the skeletal muscles and a monitor records the nerve impulses and measures conduction time; used to detect neuromuscular disorders or nerve damage.

Electrotherapy

A medical treatment using electric currents to stimulate nerves and muscles, promoting healing and reducing pain.