Which of the following will not increase a present value?
A) increase the interest rate
B) decrease the number of periods
C) increase the future value

Question

Quizplus · Accepted Answer

Increasing the interest rate actually decreases the present value of a future amount because the present value is inversely related to the interest rate. Higher interest rates mean a lower present value, as the discounting effect is stronger.

Which of the Following Will Not Increase a Present Value