The reason that finding the present value of a future sum of money requires us to discount it, is that:

Related MCQs

• ————— represent claims for the payment of a sum of money sometimes in the future and/or a periodic payment in the form of interest or dividend.
• If interest rates rise, the present value of any future earnings is bound to:
• ----------- defined Interest as “an index of the community’s preference for a dollar of present over a dollar of future income.”
• Type of bond whose present value is lesser than that of its face value is classified as
• Which among the following was set up by RBI in 1988 jointly with public sector banks and all India Financial Institutions to develop the money market & provide liquidity to money market instruments as sequel to Vaghul Working Group recommendations?
• Discount and Finance House of India was set up in .....................
• Discount and Finance House of India was set up in pursuance of the recommendations of .....................Committee
• Business finance companies provide specialized forms of credit to businesses by making loans and purchasing accounts receivable at a discount; this provision of credit is called
• The present value of a coupon bond is:
• For given change in interest rates, percentage change in present value of bond is classified as