- 15 If The Interest Rate Is Positive The Future Value Of An Interest Bearing Investment Is Always Larger Than The Prese 1 (145.07 KiB) Viewed 39 times
15. If the interest rate is positive, the future value of an interest bearing investment is always larger than the present value. Select one: True or false 16. At age 40, Flo is considering quitting her job and going back for a college degree. Flo needs two more years full-time to finish the degree. Tuition is $10,000 per year and she currently earns $30,000 per year. A college degree would raise Flo's annual income by $10,000 per year. She will retire in 30 years. Which of the following makes it less likely that Flo will decide to go back to college full-time? a. The rate of interest decreases b. Tuition decreases c. The government enacts mandatory retirement at d. The higher income of having a college degree rises age 60 17. As the interest rate rises, the present value of a given perpetual stream of income a. Approaches infinity b. Does not change c. Decreases d. Increases