If the Discount (Or Interest)rate Is Positive, the Future Value

question 25

True/False

If the discount (or interest)rate is positive, the future value of an expected series of payments will always exceed the present value of the same series.

---

Definitions:

Stock Investments

A financial asset purchased in a corporation with the expectation of earning a return through dividends, stock price appreciation, or both.

Equity Interest

Ownership interest in a company, typically represented by stocks, indicating the holder's stake in the company's assets and earnings.

Cash Dividend

A payment made by a company out of its profits to its shareholders, usually in cash.

Net Income

The net income of a company once all costs and taxes are deducted from its total revenue.