Q496
Decrease in present value at decreasing rate only when
A.
increase in availability
B.
decrease in availability
C.
interest rate decrease
D.
interest rate increases
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Decrease in present value at decreasing rate only when interest rate increases. This is because a higher interest rate means you would have to set less aside today to earn a specified amount in the future.