Which of the Following Statements Is Correct Regarding Time Value

question 64

Multiple Choice

Which of the following statements is correct regarding time value of money?

• A)The present value of a series of fixed payments will be less than its expected future value.
• B)The present value of a series of fixed payments will be greater than its expected future value.
• C)The future value of a series of fixed payments will be less than its expected future value.
• D)The future value of an annuity will be equal to its present value.

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Definitions:

Lipids

A broad group of naturally occurring molecules that include fats, oils, waxes, and certain vitamins, characterized by their insolubility in water but solubility in organic solvents.

Disaccharide

A carbohydrate made up of two monosaccharide molecules bonded together, examples include sucrose and lactose.

Simple Sugar

Small carbohydrate molecules that serve as a source of energy and building blocks for more complex carbohydrates, such as glucose and fructose.

Deoxyribose

A sugar component of DNA, having one less oxygen atom than ribose, the sugar component of RNA.