Questions
Questions

COMM_V 101 201-207 2024W2 Quiz 21: Finance

Single choice

As the interest rate increases, the present value of an amount to be received at the end of a period:

Options
A.Remains the same.
B.Increases
C.Decreases
D.Not enough information is given
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Step-by-Step Analysis
Consider the relationship between present value (PV) and the interest rate (discount rate) for a payment to be received in the future. Option 1: 'Remains the same.' If the discount rate changes, PV changes as well. Therefore PV does not remain constant when interest rates change, un......Login to view full explanation

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