The longer the time period, the lower the present value interest factor, other things being equal.

Name: The longer the time period, the lower the present value interest factor, other things being equal.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is due to the time value of money, where money is worth more in the present than it is in the future. As time passes, the value of money decreases, resulting in a lower present value interest factor.

The Longer the Time Period, the Lower the Present Value