Multiple Choice
Which of the following statements regarding the present value of an annuity is correct?
A) All other factors held constant, the present value of a given annual annuity increases as the number of discounting periods per year increases.
B) All other factors held constant, the present value of a given annual annuity decreases as the number of discounting periods per year increases.
C) All other factors held constant, the future value of a given annual annuity decreases as the number of discounting periods per year increases.
D) All other factors held constant, the future value of a given annual annuity increases as the number of discounting periods per year decreases.
Correct Answer:
Verified
Correct Answer:
Verified
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