All of the following will lead to a smaller discount factor except which one?
A)the longer the period of time until the future sum of money is received
B)the more interest that can be earned
C)a larger discount rate
D)a smaller discount rate

Question

Quizplus · Accepted Answer

A smaller discount rate leads to a larger discount factor, as the discount factor is inversely related to the discount rate.

All of the Following Will Lead to a Smaller Discount