You Are Scheduled to Receive $10,000 in One Year

question 33

Multiple Choice

You are scheduled to receive $10,000 in one year. What will be the effect of an increase in the interest rate on the present value of this cash flow?

• A) It will cause the present value to fall.
• B) It will cause the present value to rise.
• C) It will have no effect on the present value.
• D) The effect cannot be determined with the information provided.

---

Definitions:

Kinetic Balance

The dynamic equilibrium of forces acting on a body, ensuring stability and efficiency in movement.

Vestibular Membrane

Membrane separating the cochlear duct and the scala vestibuli.

Auditory Ossicles

The three small bones located in the middle ear, known as the malleus, incus, and stapes, that transmit sound vibrations to the inner ear.

Basilar Membrane

A membrane in the cochlea of the inner ear that plays a crucial role in sound vibration analysis and auditory processing.