The Present Value of a Payment to Be Made in the Future

question 18

Multiple Choice

The present value of a payment to be made in the future falls as

• A)the interest rate rises and the time until the payment is made increases.
• B)the interest rate rises and the time until the payment is made decreases.
• C)the interest rate falls and the time until the payment is made increases.
• D)the interest rate falls and the time until the payment is made decreases.

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Definitions:

Recover Damages

The act of securing compensation through legal means for a loss or injury.

Igniting Fire

The process of starting a fire, whether intentionally for a purpose or accidentally.

Reasonable Care

The degree of caution and concern for the safety of the self and others an ordinarily prudent and rational person would use in the circumstances.

Hidden Dangers

Risks or hazards that are not obvious or easily noticed but can cause harm or damage.