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.

Identify the costs and fees associated with mutual funds, including loads, 12b-1 fees, and expense ratios.

Understand the calculation of net asset value (NAV) and how it affects mutual fund transactions.

Recognize the tax implications and potential tax liabilities associated with investing in mutual funds.

Differentiate between open-end and closed-end funds as well as exchange-traded funds (ETFs).

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Definitions:

Debtor

An individual or entity that owes money to another; the party with a debt obligation.

Family Home

A residence occupied by a family, often offering a sense of security and belonging, and sometimes afforded specific legal protections.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts.

Debts Discharged

The cancellation of a debtor's obligation to pay a debt after fulfilling certain conditions, often under bankruptcy procedures.