True or False: Because Future Value (FV) is being divided, Present Value (PV) will always be less than or equal to FV.

The statement that Present Value (PV) will always be less than or equal to Future Value (FV) is indeed true in the context of conventional financial calculations. Present Value is defined as the current worth of a sum of money that future payment will give you, taking into account the interest rate and time until the payment is received.

When calculating PV from FV, the formula involves dividing FV by a factor that accounts for the interest rate over time. Given that this factor (1 + r)^n, where r is the interest rate and n is the number of periods, is always greater than or equal to one for positive interest rates or even zero for negative rates, PV will always be less than or equal to FV. This concept relies on the principle of the time value of money, which states that a dollar today is worth more than a dollar in the future due to its potential earning capacity.

In scenarios with negative interest rates, PV could equal FV under very specific conditions, but typically PV will still be less. Therefore, the answer is true since in most realistic contexts where interest rates are positive, PV will be strictly less than FV.