Circle the correct answer to these 3 questions. Thanks

5. Your grandfather has promised to give you $50,000 when you graduate from college. He is expecting you to graduate three years from now. What happens to the present value of this gift if you graduate early, in two years?

A. Increases

B. Decreases

C. Remains Constant

D. Decreases by

6. Which one of the following will produce the highest present value interest factor?

A. 9% interest for 10 years

B. 9% interest for 5 years

C. 7% interest for 10 years

D. 7% interest for 5 years

7. Which of these will decrease the present value of an amount to be received sometime in the future?

A. Decrease in the interest rate.

B. Increase in the interest rate.

C. Increase the number of periods (t).

D. Cannot be determined with information provided