The present value of $100 will decrease with a particular discount rate, but the longer the period of time, the smaller the present value.

Question

Quizplus · Accepted Answer

This is because the discount rate represents the opportunity cost of tying up money in a certain investment or asset, and as time passes, there are more potential investment opportunities and uncertainties that could impact the value of the money being discounted. Therefore, the present value will decrease over time.

The Present Value of $100 Will Decrease with a Particular