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You Are Scheduled to Receive $10 000 in One Year

question 60

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You are scheduled to receive $10 000 in one year. An increase in the interest rate will have what effect on the future value of this cash flow?


Definitions:

Cashier's Check

A check issued by a bank, drawn on its own funds rather than that of a personal account holder, guaranteeing the payee a secure form of payment.

Drawer

In financial terms, the individual or entity that writes and signs a cheque or draft, instructing a bank to pay a specified sum of money from the drawer's account.

Drawee

The party directed by a draft or check to pay a certain amount of money, typically a bank.

Payee

The individual or entity to whom money is paid or owes to be paid.

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