present value of a future sum increases as either the discount rate or the number of periods per year increases, other things held constant.

Name: present value of a future sum increases as either the discount rate or the number of periods per year increases, other things held constant.
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Question

Quizplus · Accepted Answer

The present value of a future sum decreases as the discount rate or the number of periods per year increases, because the future sum is discounted more heavily.

Present Value of a Future Sum Increases as Either the Discount