Which of the following statements is FALSE? Select one: A

Finance Oct 07, 2020

Which of the following statements is FALSE?

Select one:

A. A dollar tomorrow is worth more than a dollar today

B. The more frequent the compounding, the higher the future value, other things equal.

C. For a given amount, the lower the discount rate, the higher the present value.

D. For a given amount, the higher the discount factor, the higher the present value

Expert Solution

A dollar tomorrow is worth more than a dollar today is a false statement. The correct statement is that A dollar today is worth more than a dollar tomorrow due to inflation or its buying capacity.

The correct option is A " A dollar tomorrow is worth more than a dollar today".

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