The Present Discounted Value of a Stream of Future Income

question 168

True/False

The present discounted value of a stream of future income increases as the interest rate decreases.

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Definitions:

Check Register

A record, often part of a checkbook, where all check transactions, withdrawals, and deposits are recorded by an account holder.

Interest

A fee, usually charged for the use of money.

Check Register

A record of checks written, deposits made, and current balances within a checking account.

Deposits

Money placed into an account or given to a third party as a pledge for the fulfilment of an agreement.