Which one of the following statements correctly defines a time value of money relationship?
A) Time and future values are inversely related, all else held constant.
B) Interest rates and time are positively related, all else held constant.
C) An increase in a positive discount rate increases the present value.
D) An increase in time increases the future value given a zero rate of interest.
E) Time and present value are inversely related, all else held constant.
Correct Answer:
Verified
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