The higher the rate of interest:

A) the larger the present value of a future sum of money.
B) the smaller the future value of an amount invested today.
C) the smaller the present value of a future sum of money.
D) All of the above

Interest Rate

The cost of borrowing money or the return on invested funds, typically expressed as a percentage.

Present Value

The immediate worth of a future lump sum or successive cash inflows, considering a specific return rate.

Future Sum

The projected amount of money or value at a specific future date, usually factoring in variables such as interest rates and time periods.