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Using the Annuity Rule, We Can Infer That an Increase

Question 17

Multiple Choice

Using the annuity rule, we can infer that an increase in the market interest rate from 5 to 10 percent will:


A) halve the present value of an annuity.
B) double the present value of an annuity.
C) not change the present value of an annuity.
D) have an unknown effect on the present value of an annuity.

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