Which of the Following Changes Would Decrease the Present Value

question 16

Multiple Choice

Which of the following changes would decrease the present value of a future payment?

• A)a decrease in the size of the payment
• B)an increase in the time until the payment is made
• C)an increase in the interest rate
• D)All of the above are correct.

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Definitions:

Restrictive Endorsements

Limiting conditions or instructions written on the back of negotiable instruments, like checks, controlling their use or further transfer.

Article 3

This term could refer to different documents or laws depending on context, such as a specific article in a constitution, treaty, or law code, thus requires specification for an accurate definition.

Trust

A fiduciary arrangement whereby one party, known as a trustee, holds assets for the benefit of another party or parties, known as beneficiaries.

Condition

A specific requirement within a contract that must be fulfilled for the contract to be completed or valid.