Multiple Choice
The higher the rate used in determining the future value of a $1 annuity,
A) the smaller the future value at the end of the period.
B) the greater the future value at the end of a period.
C) the greater the present value at the beginning of a period.
D) none of these - the interest has no effect on the future value of an annuity.
Correct Answer:
Verified
Correct Answer:
Verified
Q31: The formula PV = FV(1 + n)<sup>i</sup>
Q58: Ali Shah sets aside 2,000 each year
Q60: Sharon Smith will receive $1 million in
Q61: Pedro Gonzalez will invest $5,000 at the
Q62: The interest factor for the present value
Q64: After 10 years, 100 shares of stock
Q66: As the interest rate increases, the interest
Q66: In January, 2000, Harold Black bought 100
Q68: John Doeber borrowed $150,000 to buy a
Q74: Under what conditions must a distinction be