Using the Annuity Rule, We Can Infer That an Increase

question 17

Multiple Choice

Using the annuity rule, we can infer that an increase in the market interest rate from 5 to 10 percent will:

• A)halve the present value of an annuity.
• B)double the present value of an annuity.
• C)not change the present value of an annuity.
• D)have an unknown effect on the present value of an annuity.

---

Definitions:

Correct Action

The implementation of a decision or strategy that is deemed appropriate or beneficial in a particular situation to achieve a desired outcome.

Boomerang Close

A sales technique where objections from the customer are turned into reasons why they should make the purchase.

Rephrased Objection

A reworded or reinterpreted objection or concern raised typically in a negotiation or discussion.

Clearwater Hampers

A brand or company known for providing gift hampers, potentially filled with gourmet foods, wines, and other luxury items.