The present value of a payment of $500 to be made two years from today is greater if the interest rate is 7% than if it is 6%.

Name: The present value of a payment of $500 to be made two years from today is greater if the interest rate is 7% than if it is 6%.
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The present value of a future payment decreases as the interest rate increases, because a higher rate means a greater discount is applied to the future payment.

The Present Value of a Payment of $500 to Be