The larger the future value, the larger the present value.

Name: The larger the future value, the larger the present value.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The statement is not true. The relationship between present value and future value depends on factors such as interest rate, time period, and compounding frequency. It is possible for a smaller future value to have a larger present value if the interest rate and time period are high enough.

The Larger the Future Value, the Larger the Present Value