The higher the interest rate, the lower the present value of a future amount. Why?

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Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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Question Posted: Dec 30, 2011 04:56 AM

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The higher the interest rate, the lower the present value of a future amount. Why?

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Present values are less when discount rates are high as compared to when th...View the full answer

Accounting concepts and applications

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