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spin [16.1K]
3 years ago
13

Is it possible to have the present value of a future payment that is greater than the future payment (i.e. the present value is

$1200, and the future payment is $1000)? Explain, using complete, grammatically-correct sentences.
Computers and Technology
1 answer:
asambeis [7]3 years ago
6 0

Note that the present value always less than the future value and so Is it not possible to have the present value of a future payment that is greater than the future payment.

<h3>Can present value be greater than future cash flows?</h3>

The present value is known to be often less than the future value this is due to the reason that money has interest-earning rate on top of it.

So therefore, that base on the fact that as long as interest rates are positive, then the present value of a sum of money will have to be less than its future value.

Learn more about present value from

brainly.com/question/20813161

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<u><em /></u>

<u><em /></u>

<u><em>i think this might help !!!</em></u>

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