The shorter the length of time between a present value and its corresponding future value,
A)the lower the present value, relative to the future value.
B)the higher the present value, relative to the future value.
C)the higher the interest rate used in the discounting to the present value.
D)None of these options

Question

Quizplus · Accepted Answer

The shorter the time period, the less time there is for interest to accrue, resulting in a higher present value relative to the future value.

The Shorter the Length of Time Between a Present Value