Assuming a Positive Interest Rate, the Dollar Amount of a Future

question 354

Multiple Choice

Assuming a positive interest rate, the dollar amount of a future payment is:

• A) exactly the same as its present value.
• B) approximately the same as its present value.
• C) less than its present value.
• D) more than its present value.

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Definitions:

Inventory

Items or goods held by a company for the purpose of sale or production, including raw materials, work-in-progress, and finished goods.