As the interest rate increases,the present value of a future payment
A) increases.
B) decreases.
C) does not change.
D) approaches infinity.

Name: As the interest rate increases,the present value of a future payment A) increases. B) decreases. C) does not change. D) approaches infinity.
Brand: Quizplus
Rating: 4.8 (33 reviews)

Question

Quizplus · Accepted Answer

As the interest rate increases, the discount rate used to calculate the present value also increases, resulting in a decrease in the present value of a future payment.

As the Interest Rate Increases,the Present Value of a Future