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Which one of the following will increase the present value of a lump sum future amount?...

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Finance

Which one of the following will increase the present value of alump sum future amount? Assume the interest rate is a positivevalue and all interest is reinvested.
A. Increase time period
B. None of these
C.Increase in interest rate
D. Decrease in time period

Double checking, I believe answer is C.?

Answer & Explanation Solved by verified expert
4.1 Ratings (622 Votes)
The correct answer to the above question is D Decrease in time period The formula for calculation of present value of a future amount is as follows    See Answer
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Which one of the following will increase the present value of alump sum future amount? Assume the interest rate is a positivevalue and all interest is reinvested.A. Increase time periodB. None of theseC.Increase in interest rateD. Decrease in time periodDouble checking, I believe answer is C.?

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