Present Value Refers to an Amount That Must Be Invested

question 30

True/False

Present value refers to an amount that must be invested today at a given rate of interest to produce a given future value.

---

Definitions:

Price

The amount of money required to purchase a good or service in the market.

Supply Curve

The supply curve is a graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to supply.

Nonprice Determinants

Factors that affect demand or supply but are not related to the price of the good or service, such as consumer preferences or production technology.

Technology

The use of scientific understanding to achieve practical goals, particularly within industrial sectors.