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:

Telemarketing Sales Rules of 1995

Regulations implemented to protect consumers from deceptive or abusive telemarketing practices, including various consumer rights and restrictions on telemarketers.

Sales Call

A communication, typically by phone or in person, initiated by a salesperson or entity to potential customers with the objective of selling a product or service.

Truth-in-Lending Act

A national regulation aiming to encourage knowledgeable utilization of consumer credit through mandatory disclosures regarding its conditions and expenses.

Natural Person

A human being, as opposed to a legal entity such as a corporation, recognized as a legal subject with rights and obligations.