Present value diminishes for higher future values and higher interest rates.

Name: Present value diminishes for higher future values and higher interest rates.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Present value increases with higher future values but decreases with higher interest rates. Higher future values mean more money in the future, increasing present value, while higher interest rates decrease present value by increasing the discount factor.

Present Value Diminishes for Higher Future Values and Higher Interest