Question: Is my answer to the question correct and does it make sense? 3. Explain how present values are affected by changes in interest rates. Present

Is my answer to the question correct and does it make sense?

3. Explain how present values are affected by changes in interest rates.

Present Values are affected by the changes in the interest rates: the lower the interest rate, the less interest the current value will accumulate.

In a Money market deposit account, the interest rate changes, and you are not guaranteed a rate.If you are making 2% interest month one and on month 2, you are making 1% your interest earned is less, in month 2 than month 1, but you are still have received more than your original value of the account.

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