The lower the interest rate, i, the:
A) lower is the present value.
B) greater must be n.
C) higher is the present value.
D) higher is the future value.

Name: The lower the interest rate, i, the: A) lower is the present value. B) greater must be n. C) higher is the present value. D) higher is the future value.
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Question

Quizplus · Accepted Answer

A lower interest rate decreases the discount factor, which increases the present value of future cash flows.

The Lower the Interest Rate, I, The