Question
d. The present value of $2,580 due in 10 years at 6% and 3%. Present value at 6%: $ _______ Present value at 3%: $
d. The present value of $2,580 due in 10 years at 6% and 3%.
Present value at 6%: $ _______
Present value at 3%: $ _________
e. Define present value.
- The present value is the value today of a sum of money to be received in the future and in general is less than the future value.
- The present value is the value today of a sum of money to be received in the future and in general is greater than the future value.
- The present value is the value today of a sum of money to be received in the future and in general is equal to the future value.
- The present value is the value in the future of a sum of money to be received today and in general is less than the future value.
- The present value is the value in the future of a sum of money to be received today and in general is greater than the future value.
-Select- ___________
How are present values affected by interest rates?
A.Assuming positive interest rates, the present value will increase as the interest rate increases.
B- Assuming positive interest rates, the present value will decrease as the interest rate increases.
C. Assuming positive interest rates, the present value will decrease as the interest rate decreases.
D-Assuming positive interest rates, the present value will not change as the interest rate increases.
E-Assuming positive interest rates, the present value will not change as the interest rate decreases.
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