In General the Present Value of $1,000 Received in the Future

question 176

Multiple Choice

In general the present value of $1,000 received in the future will

• A)be independent of the market rate of interest.
• B)be lower,the higher the market rate of interest.
• C)be lower,the lower the market rate of interest.
• D)worth the same whether received one year from today or two years from today.

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Definitions:

Legal Right

A legal right is an entitlement or permission backed by law or legal principles.

Disaffirm

The legal act of declaring a contract voidable, renouncing or refusing to recognize an engagement.

Emancipated Minor

A person under the age of majority who is legally granted most adult rights and responsibilities by court order or other means.

Contractual Obligations

Contractual obligations are duties that are legally binding on the parties involved in a contract, requiring them to act or refrain from acting in certain ways.