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the present value will go down

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Q: What happens to the present value if you increase the rate?
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Related questions

Does present value increase or decrease when the interest rate increases?

decrease


What happens to the future value of an annuity if you increase the rate?

The future value will go up.


What happens to the present value of an annuity when the interest rate decreases?

it increases


What happens to the future value of money when the inflation exceeds the interest rate?

it will increase


What happens to the present value of an annuity when the interest rate raises?

decreases towards the future value faster


To increase a given present value the discount rate should be adjusted?

highest


When using the net present value method for evaluating an investment an increase in the required rate of return will?

The increase in rate of return will make the investment more difficult to be accepted.


What happens to the present value of an annuity as the interest rate increases?

wat is 1 thing bad in easter


As the discount rate becomes higher and higher the present value of inflows approaches what?

As, the present value of future cash flows is determined by the discount rate, so increase or decrease in the discount rate will affect the present value. Discount rate is simply cost or the expense to the company,so in simplest terms, discount rate goes up, cost goes up,so this will lower the present value of cash flows. Assumes a discount rate of 5%,to discount $100 in one years time: Present Value=$100 * 1/(1.05) =$95.24 Ok,as you say,if the discount rate becomes higher,let's say 8%: Present Value=$100 * 1/(1.08) =$92.6 so, the higher the discount rate, the lower the present value.


What is natural increase in population?

The rapid increase in population without any control is called non-natural increase in population.In our present world today there is a sign of non-natural increase in population .It happens when the Death Rate of people is considerably low as compared to the Birth Rate of humans.


Does the present value of money increase as the number of years before the payment is received increases?

No, it should decrease, assuming the interest rate is the same.


If the interest rate is 4 percent what is the present value of this stream of payments?

Present value of streams can be found by dividing the streams with 4 percent interest rate for example if stream is 100 then present value will be present value = 100 / .04