Which of the Following Is True Regarding the Present Value

question 10

Multiple Choice

Which of the following is true regarding the present value of a future sum?

• A)The present value of a future sum decreases as either the discount rate or the number of periods per year increases.
• B)The present value of a future sum increases as either the discount rate or the number of periods per year increases.
• C)The present value of a future sum remains stable as either the discount rate or the number of periods per year increases.
• D)There is no relationship between present and future value.

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Definitions:

Issue

A point or matter of discussion, debate, or dispute, often requiring resolution or consideration.

Wording

The choice and use of words in speech or writing, impacting communication effectiveness and interpretation.

Extrinsic Motivation

The desire to perform a behavior to receive promised rewards or avoid threatened punishment.

Creativity

The ability to produce original and valuable ideas, involving imagination and the generation of new solutions to problems.