The relationship between the present value and the investment time period is best described as:

11. The relationship between the present value and the interest rate is best described as: ___A. vertical. ___B. unrelated. ___C. direct. __D. inverse. ___E. uncorrelated.

Answer

The relationship between the present value and interest rate is best described as D INVERSE.

As Interest rate increases, present value decreases, and it shows inverse relation between the two.


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