Which of the Following Will Increase the Present Value of an Annuity

question 140

Multiple Choice

Which of the following will increase the present value of an annuity?

• A) The number of periods decreases.
• B) The interest rate decreases.
• C) The amortization schedule decreases.
• D) The effective rate is calculated over fewer years.

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Definitions:

Strength/Attractiveness Matrix

A strategic tool used to analyze a company's product portfolio based on the relative strength of the products and the attractiveness of the markets.

SWOT Analysis

A strategic planning tool that identifies and evaluates a company's Strengths, Weaknesses, Opportunities, and Threats, facilitating informed decision-making.

Perceptual Map

A visual representation used in marketing to display how consumers perceive a product or brand in comparison to its competitors on various dimensions.

Differentiated Marketing

A strategy where a company targets multiple market segments with a unique marketing strategy for each, rather than adopting a mass marketing approach.