Multiple Choice
Which of the following statements is true with respect to the present value of a future amount?
A) The higher the discount rate, the higher the present value of a single sum for a given time period.
B) The relation between present value and time is exponential.
C) The greater the time period, the higher the present value of a single sum for a given interest rate.
D) The lower the discount rate, the lower the present value of a single sum for a given time period.
Correct Answer:
Verified
Correct Answer:
Verified
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