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Assume you will receive $7,000 in 3 years. If the interest rates increase, then: The present value will remain unchanged. none of the proposed choices

Assume you will receive $7,000 in 3 years. If the interest rates increase, then:
The present value will remain unchanged.
none of the proposed choices The present value of that amount will rise, because it will be discounted at a lower rate.
Cannot be determined without additional information.
The present value of that amount will fall, because it will be discounted at a higher rate.

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