Question
3. Which of the following will increase the present value of a future lump sum payment? (Choose all that apply) I. Decrease in interest rate
3. Which of the following will increase the present value of a future lump sum payment? (Choose all that apply)
I. Decrease in interest rate
II. Increase in interest rate
III. Decrease in the investment period
IV. Decrease in the amount of the future lump sum payment
5.Given an interest rate of zero percent, the future value of a lump sum invested today will always:
a. remain constant, regardless of the investment time period.
b. decrease if the investment time period is shortened.
c. decrease if the investment time period is lengthened.
d. be equal to $0.
e. be infinite in value.
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