Which of the Following Changes Would Decrease the Present Value

question 35

Multiple Choice

Which of the following changes would decrease the present value of a future payment?

• A)an increase in the size of the payment
• B)an increase in the time until the payment is made
• C)a decrease in the interest rate
• D)All of the above are correct.

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Definitions:

Office Supplies

Items and materials used in offices for daily work activities, including paper, pens, and office equipment.

Office Equipment

Fixed assets that are used in an office environment for the purpose of performing business operations, including computers, printers, and furniture.

Journal Entry

A record in accounting that represents a transaction in the ledger.

Notes Payable

Written promissory notes in which a borrower agrees to pay back the lender at a later date, often with interest.