The present value of a future amount of money will be greater, lowering the interest rate. Thus the correct option is B.
Interest rate refers to the amount charged by the bank when lending any money to the borrower. The borrower has to repay the loan amount based on this interest rate along with the principal amount.
The present worth of an amount of money will always be lower than its future value as long as rates of interest are positive and rates of interest are always positive.
Therefore, option B lower the interest rate is appropriate.
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The complete question is Probably
The present value of a future amount of money will be greater the
greater the amount of time before the future payment is received.
lower the interest rate.
greater the rate of the expected rate of inflation.
greater the interest rate.
