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:

Strong Points

The aspects or characteristics of something or someone that provide an advantage or superior capability.

Deliberate Self-destruction

Intentionally causing harm or damage to oneself, often as a form of coping with distress or mental health issues.

Well-adjusted

Describes a person who is mentally and emotionally stable and able to cope effectively with the demands of daily life.

Similar

Having a likeness or resemblance, often in terms of appearance, nature, or qualities, to something else.