The Present Value of a Lump-Sum Future Amount

question 54

Multiple Choice

The present value of a lump-sum future amount:

• A)increases as the interest rate decreases.
• B)decreases as the time period decreases.
• C)is inversely related to the future value.
• D)is directly related to the interest rate.
• E)is directly related to the time period.

---

Definitions:

Relationship Roles

The expected behaviors and responsibilities assigned to individuals in various interpersonal relationships.

Extraversion

A personality trait characterized by outgoingness, high levels of social engagement, and a tendency to seek stimulation in the company of others.

Attraction Relations

The dynamics of interpersonal or social attraction, including factors that draw individuals or groups towards each other.

Interactionist Approach

A theoretical perspective in sociology and psychology that focuses on how individuals interact with each other in society, shaping their behaviors and social roles.