Which of the following changes would decrease the present value of a future payment?
A)an increase in the size of the payment
B)an increase in the time until the payment is made
C)a decrease in the interest rate
D)All of the above are correct.

Question

Quizplus · Accepted Answer

An increase in the time until the payment is made decreases the present value because the money is discounted over a longer period.

Which of the Following Changes Would Decrease the Present Value