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:

Shift Points

Specific engine speeds at which an automatic transmission changes gears, maximizing performance or fuel efficiency.

Governed Rpm

The maximum engine speed set by a governor device, designed to prevent damage to the engine by limiting its operational speed.

Stall Test

A diagnostic procedure used to evaluate the performance of an automatic transmission and torque converter by measuring engine response and behavior under load.

Stall Test

A diagnostic procedure used to assess the condition and performance of a vehicle's transmission or torque converter by measuring its ability to hold a specific engine speed without moving.