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:

Capsaicin

A chemical compound found in chili peppers responsible for their hot and spicy flavor, which is also used in topical medications for its pain relief properties.

Substance P

A neuropeptide involved in the transmission of pain and other sensory signals in the central and peripheral nervous system.

Serotonin

A neurotransmitter that plays a crucial role in mood regulation, digestion, sleep, and various other bodily functions.

Dopamine

A neurotransmitter involved in reward, motivation, and various other neurological and physiological functions.