The lower the interest rate, i:
A)The lower is the present value
B)The greater must be n
C)The higher is the present value
D)The higher is the future value

Name: The lower the interest rate, i: A)The lower is the present value B)The greater must be n C)The higher is the present value D)The higher is the future value
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

A lower interest rate increases the present value of future cash flows, as the discounting effect is reduced.

The Lower the Interest Rate, I