You are scheduled to receive $10,000 in one year. What will be the effect of an increase in the interest rate on the future value of this cash flow?

A) It will cause the future value to fall.
B) It will cause the future value to rise.
C) It will have no effect on the future value.
D) The effect cannot be determined with the information provided.

Answer: C

Business

You might also like to view...

The following are internal stakeholders, except:

A) employees B) labor unions C) shareholders D) customers

View

Business

Which of the following is the most common type of life insurance policy offered by companies?

A) group life B) term life C) whole life D) universal

View

Business