Table factors for present values
A) decrease as the interest rate decreases
B) decrease as the number of periods increases
C) increase as the interest rate increases
D) increase as the number of periods increases

Question

Quizplus · Accepted Answer

Table factors for present values decrease as the number of periods increases because the further in the future a payment is, the less it is worth in today's dollars, assuming a positive interest rate.

Table Factors for Present Values