In time-value of money analysis, a decrease in interest rates

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A decrease in interest rates raises the present value of a future amount because the lower discount rate reduces the cost of waiting for the future payment. As a result, the present value of the future payment increases, since the future amount is discounted back to the present at a lower rate. Vice versa, an increase in interest rates lowers the present value of a future amount.

In Time-Value of Money Analysis, a Decrease in Interest Rates