The Present Value of a Promise to Pay $100 One

question 9

True/False

The present value of a promise to pay $100 one year from now would be greater if the interest rate were higher.

---

Definitions:

Pectoralis Group

A group of muscles located at the front of the chest, involved in movements of the shoulder and arm.

Clavicle

A long bone that serves as a strut between the shoulder blade and the sternum or breastbone, known colloquially as the collarbone.

Biceps Brachii

A muscle located in the upper arm that allows for the flexion of the elbow and rotation of the forearm.

Flexor

A type of muscle that decreases the angle between bones on two sides of a joint, allowing limbs to be bent.