If the present value of a given sum is equal to its future value, then:
A)the discount rate must be very high.
B)there is no inflation.
C)the discount rate must be zero.
D)none of the above are correct.

Question

Quizplus · Accepted Answer

If the present value is equal to the future value, then the discount rate must be zero because there is no discounting or compounding factor involved. This assumes that there is no inflation or any other factors that would affect the value of the money over time.

If the Present Value of a Given Sum Is Equal