A. increase in availability
B. decrease in availability
C. interest rate decrease
D. interest rate increases
✅ The correct answer is option D.
Decrease in present value at decreasing rate only when interest rate increases. This is because a higher interest rate means you would have to set less aside today to earn a specified amount in the future.
Decrease in present value at decreasing rate only when interest rate increases. This is because a higher interest rate means you would have to set less aside today to earn a specified amount in the future.