You Are Scheduled to Receive $10,000 in One Year

question 33

Multiple Choice

You are scheduled to receive $10,000 in one year. What will be the effect of an increase in the interest rate on the present value of this cash flow?

• A) It will cause the present value to fall.
• B) It will cause the present value to rise.
• C) It will have no effect on the present value.
• D) The effect cannot be determined with the information provided.

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Definitions:

Industriousness

A trait characterized by a persistent and hardworking approach to tasks and goals, often leading to success in endeavors.

High Aspirations

The desire to achieve great success or high standards.

Emotional Maturity

The ability to understand, control, and express one's emotions in a healthy and constructive way.

First Task

The initial duty or activity that is to be undertaken or accomplished.