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Consider a given lump sum FV, for which we have calculated a present value (PV) using some interest rate (l) and number of time periods
Consider a given lump sum FV, for which we have calculated a present value (PV) using some interest rate (l) and number of time periods (N). If we do not change the FV amount, nor the interest rate I, but increase the number of time periods (N) in our calculation of a present value, how will the present value (PV) change (relative to the value we originally calculated with a smaller N)? The new PV will increase change, but without knowing the specific values we cannot determine if it will increase or decrease be equal to zero decrease remain unchanged
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