The Present Value of an Amount Is

question 143

Multiple Choice

The present value of an amount is:

• A)Always greater than the future value.
• B)Always less than the future value.
• C)Always equal to the future value.
• D)Greater than,less than,or equal to the future value depending upon interest rates and the time period involved.

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Definitions:

Straight Line

In geometry, the shortest distance between two points, characterized by its uniform direction and infinite length in both directions.

Vertical

A term used in economics and business to describe activities or entities that operate at different stages of the production process, from raw materials to final product.

Horizontal

Relating to or involving entities at the same level of a hierarchy or process, often used to describe market competition between companies with similar products.

Slope

Slope indicates the steepness or incline of a line, defined as the ratio of the vertical change to the horizontal change between two points on the line.