American_Bankers_Association
CTFA · Question #274
In 3 years you are to receive $5,000. If the interest rate were to suddenly increase, the present value of that future amount to you would:
The correct answer is A. Fall. See the full explanation below for the reasoning.
Investment Management
Question
In 3 years you are to receive $5,000. If the interest rate were to suddenly increase, the present value of that future amount to you would:
Options
- AFall
- BRise
- CRemain unchanged
- DCannot be determined without more information
How the community answered
(25 responses)- A76% (19)
- B8% (2)
- C12% (3)
- D4% (1)
Topics
#present value#interest rates#future value#inverse relationship
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