For a given future value, the higher the interest rate is, the higher the present value will be.

Name: For a given future value, the higher the interest rate is, the higher the present value will be.
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Question

Quizplus · Accepted Answer

For a given future value, a higher interest rate results in a lower present value because the amount of money needed today to reach a specific future value decreases as the interest rate increases.

For a Given Future Value, the Higher the Interest Rate