Which of the following discount rates will produce the smallest present value of a single sum of money?
A)4%
B)6%
C)7%
D)9%

Name: Which of the following discount rates will produce the smallest present value of a single sum of money? A)4% B)6% C)7% D)9%
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Question

Quizplus · Accepted Answer

The higher the discount rate, the lower the present value of a single sum of money. Therefore, of the given choices, 9% will produce the smallest present value.

Which of the Following Discount Rates Will Produce the Smallest