The relationship between the present value and the time period is best described as:
A)direct.
B)inverse.
C)unrelated.
D)ambiguous.
E)parallel.

Question

Quizplus · Accepted Answer

The relationship between the present value and the time period is inverse. This means that as the time period increases, the present value decreases. Similarly, as the time period decreases, the present value increases. This relationship is described by the time value of money concept, which suggests that money is worth more in the present than it is in the future due to factors such as inflation and opportunity cost.

The Relationship Between the Present Value and the Time Period