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Suppose you received $1,000 and you wish to find its value in 10 years. Calculate the value of this gift if the interest rate was 8% per year, 10% per year, and 12% per year. What can be said about interest rates in this problem?

A - As rates increase, present value decreases at a decreasing rate.

B - As rates increase, present value decreases at an increasing rate.

C - As rates increase, future value increases at a decreasing rate.

D - As rates increase, future value increases at an increasing rate.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92064257

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