The Present Value of a Given Payment Will Be Lower

question 54

Multiple Choice

The present value of a given payment will be lower _____

• A)if the rate of inflation is high when the payment is received.
• B)the lower the prevailing interest rate.
• C)the further in the future the payment is to be received.
• D)the sooner the payment is to be received.
• E)if the payment is made in cash.

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Definitions:

Tendencies

Inclinations or predispositions toward certain behaviors, thoughts, or actions that are characteristic of an individual or group.

Assimilated

The process by which a person or group adopts the cultural traits or social patterns of another group, often losing their original identity.

Economically Successful

A state of achieving significant financial prosperity or wealth, often linked to effective management of resources and investments.

Educationally Successful

Achieving significant accomplishments or obtaining high levels of performance in educational settings, often measured by grades, graduation, or other academic achievements.