Question: Which one of the following will decrease the present value of a fixed future amount? Assume the interest rate is a positive value. A. Increase

Which one of the following will decrease the present value of a fixed future amount? Assume the interest rate is a positive value.

  • A. Increase in the compounding frequency

  • B. Decrease in the time period

  • C. Decrease in the interest rate

  • D. None of the above

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!