Multiple Choice
Which of the following statements is false with respect to the present value of a future amount?
A) The higher the discount rate, the lower 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 lower 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
Q8: If Bank A pays interest on a
Q8: The present value technique uses discounting to
Q9: Which one of the following statements is
Q26: If you had a choice of choosing
Q34: The process of converting an amount given
Q48: Multiple compounding periods (FV): Your mother is
Q52: Multiple compounding periods (FV): Hector Cervantes started
Q57: Your aunt is looking to invest a
Q71: The higher the discount rate, the lower
Q91: Multiple compounding (PV): Darius Miller is seeking