If the Interest Rate Is 0

question 37

Multiple Choice

If the interest rate is 0%:

• A)future amounts have zero present value.
• B)future amounts have an infinite present value.
• C)the present value of amounts to be received in the future is equal to the sum of those amounts.
• D)the future value of an investment is less than the sum of its cash flows.

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Definitions:

Independent Variable

A manipulated factor in an experiment, chosen to determine its potential effect on a dependent outcome.

Dependent Variable

The outcome factor in a study that changes in response to manipulations of the independent variable.

Nonexperimental Method

A research strategy that involves observing and collecting data without manipulating the environmental conditions or variables.

Cause And Effect

A relationship in which one event (the cause) leads to the occurrence of another event (the effect).