The Present Value of a Single Sum

question 51

Multiple Choice

The present value of a single sum

• A) increases as the discount rate decreases.
• B) decreases as the discount rate decreases.
• C) increases as the number of discount periods increases.
• D) increases as the discount rate increases.
• E) none of the above.

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Definitions:

Bottom 20%

The bottom 20% typically refers to the lowest quintile in a distribution, such as income levels, often used to describe those with the lowest earnings.

Families

Groups of individuals related by blood, marriage, or adoption who live together and share economic, emotional, and social ties.

Income Inequality

The uneven allocation of income among individuals or households within an economic system.

Distribution Of Income

The way in which total income is shared amongst the population or different groups within a society.