The Higher the Rate Used in Determining the Future Value

question 87

Multiple Choice

The higher the rate used in determining the future value of an annuity,

• A) the smaller the future value at the end of the period.
• B) the greater the future value at the end of the period.
• C) the greater the present value at the beginning of the period.
• D) None of these-the interest rate has no effect on the future value of the annuity.

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Definitions:

Sclera

White of the eye; white, opaque portion of the fibrous tunic of the eye.

Bulbar Conjunctiva

Conjunctiva that covers the surface of the eyeball.

Blink Reflex

An involuntary blinking of the eyelids elicited by stimulation of the cornea or sudden approach of objects, serving as a protective mechanism for the eyes.

Palpebral Fissure

Space between the upper and lower eyelids.