A Change in the Interest Rate

Multiple Choice

A change in the interest rate:

A) has a smaller impact on the present value of a payment to be made far into the future than on one to be made sooner.
B) will not make a difference in the present values of two equal payments to be made at different times.
C) has a larger impact on the present value of a payment to be made far into the future than on one to be made sooner.
D) has a larger impact on the present value of a bigger payment to be made far into the future than on one of lesser value.