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

question 9

Multiple Choice

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

• A) The discount rate increases.
• B) The discount rate decreases.
• C) The number of periods the annuity is received increases.
• D) The final payment increases.

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Definitions:

National Self-Determination

The principle or philosophy that a nation has the right to constitute itself as a sovereign state and to choose its own government and political status.

Public Dissent

Disagreement or discontent expressed by the public against policies, norms, or leadership.

Governmental Policies

Strategies and measures developed and implemented by a government to achieve specific goals and address national concerns.

Imprisonment

The act of confining someone in a prison or as if in a prison as punishment for a crime or while awaiting trial.