Which of the Following Statements Is True About the Time

question 13

Multiple Choice

Which of the following statements is true about the time value of money?

• A)The present value of a future amount will be greater if funds earn 5% instead of 10%.
• B)The present value of a single sum will be unaffected by the rate of return at which funds grow.
• C)The present value of a future amount will be greater if funds earn 12% instead of 6%.
• D)The present value of a future amount will be unaffected by how far in the future funds would be received.

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Definitions:

Muggings

Acts of attacking and robbing someone in a public place.

Hot Temperatures

High degrees of heat or warmth in the environment, often causing discomfort or physiological stress.

Potential Victims

Individuals or groups who are at risk of harm or adverse effects from another's actions, environmental situations, or accidents.

Correlation Coefficient

A statistical measure that indicates the extent to which two variables fluctuate together.