Question: How would a decrease in the interest rate effect the present value of a lump sum, single amount problem (all other variables remain the same)?

How would a decrease in the interest rate effect the present value of a lump sum, single amount problem (all other variables remain the same)?

Multiple Choice

  • Increase the time needed to save.

  • Increase the present value.

  • Change the future value.

  • Decrease the present value.

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