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:

Piaget

Refers to Jean Piaget, a Swiss psychologist known for his pioneering work in the study of child development and his theory of cognitive development.

Classical-Conditioning Principles

The psychological mechanisms and rules through which organisms learn to associate stimuli and anticipate events, based on the work of Ivan Pavlov.

Frank

Open, honest, and direct in speech or writing, especially when dealing with unpalatable matters.

Jellyfish

Aquatic animals belonging to the phylum Cnidaria, known for their gelatinous, umbrella-shaped bodies and trailing tentacles.