Question: As the interest rate increases without limit (i.e., approaches infinity) the present value of $100 in the future : a. approaches minus infinity b. stays

As the interest rate increases without limit (i.e., approaches infinity) the present value of $100 in the future :

a. approaches minus infinity

b. stays unchanged

c. approaches zero

d. approaches positive infinity

e. the discount rate can never increase

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!