Which of the following statements is true about the time value of money?
A) The present value of a future amount will be greater if funds earn 5% instead of 10%.
B) The present value of a single sum will be unaffected by the rate of return at which funds grow.
C) The present value of a future amount will be greater if funds earn 12% instead of 6%.
D) The present value of a future amount will be unaffected by how far in the future funds would be received.
Correct Answer:
Verified
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