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:

Egypt

A country in North Africa known for its ancient civilization and monumental architecture, including pyramids and the Great Sphinx.

Syria

A country in Western Asia, known for its ancient civilizations, rich cultural heritage, and recent conflicts.

Dura-Europos

An ancient city on the Euphrates river, known for its well-preserved ruins that offer insights into various cultures including the Romans, Persians, and others.

Arch of Constantine

An ancient Roman triumphal arch in Rome, commemorating Emperor Constantine I's victory at the Battle of Milvian Bridge in 312 CE.