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The Present Value of $100 to Be Received in the Year

Question 301

Multiple Choice

The present value of $100 to be received in the year 2021 is


A) less than the present value of $100 to be received in 2022.
B) greater than the present value of $100 to be received in 2022.
C) the same as the present value of $100 to be received in 2022.
D) greater than the present value of $100 to be received in 2022 if the interest rate in 2022 exceeds the interest rate in 2021; otherwise, it is less.

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