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The Present Value of $100 Paid in 5 Years Will

Question 12

Multiple Choice

The present value of $100 paid in 5 years will be:


A) less than $100 if the interest rate is positive.
B) less than $100 if the interest rate is zero.
C) more than $100 if the interest rate is positive.
D) $100 if the interest rate is positive.

Correct Answer:

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