As the interest rate increases,the opportunity cost of waiting to receive a future amount:
A) increases.
B) decreases.
C) may rise or fall.
D) remains the same.

Question

Quizplus · Accepted Answer

When the interest rate increases, the present value of future cash flows decreases. As a result, the opportunity cost of waiting to receive a future amount increases. Therefore, choice A is correct.

As the Interest Rate Increases,the Opportunity Cost of Waiting to Receive