If the present value of a given sum is equal to its future value, then
A)the discount rate must be very high
B)there is no inflation
C)the discount rate must be zero
D)none of the answers is correct

Question

Quizplus · Accepted Answer

If the present value of a given sum is equal to its future value, it means that there is no discounting or interest rate applied to the sum. Therefore, the discount rate must be zero. If there was any discount rate (even a very small one), the present value would be lower than the future value (assuming no cash flows in between). So, options A and B are incorrect, and D is not applicable.

If the Present Value of a Given Sum Is Equal