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:

Fossil Fuels

Natural fuels formed from the decayed remains of plants and animals over millions of years, including coal, oil, and natural gas.

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A species of bumblebee native to North America known for its distinctive white-tipped abdomen.

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An endangered species of marine mollusk native to the coast of California, known for its distinctive white shell.

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A species of butterfly known for its striking orange and black wings, and remarkable migration patterns across North America.