The Shorter the Length of Time Between a Present Value

question 5

Multiple Choice

The shorter the length of time between a present value and its corresponding future value,

• A) the lower the present value, relative to the future value.
• B) the higher the present value, relative to the future value.
• C) the higher the interest rate used in the discounting to the present value.
• D) None of these options are correct.

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Definitions:

Social classification

The organization of individuals into groups based on shared characteristics or attributes, which can influence social identity and interactions.

Age

The length of time that a person or object has been alive or in existence.

Life expectancy

The average number of years that a person is expected to live based on demographic factors like their current age and gender.

Feminists

Individuals who advocate for equal rights and opportunities for women, challenging gender inequality and promoting female empowerment.