All Other Things Held Constant,the Present Value of a Given

question 82

True/False

All other things held constant,the present value of a given annual annuity increases as the number of periods per year increases.

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Definitions:

Annuity Contract

A financial product offered by insurance companies that provides a series of payments at regular intervals for a specified period or for life.

Present Value

Today's value of a future monetary amount or a string of cash flows, considering a specified rate of return.

Periodic Interest Rate

The interest rate charged or earned over a particular period of time, often monthly, quarterly, or annually, as opposed to the annual percentage rate (APR).

Annuity

A retirement funding product that assures fixed payments over time to the receiver, primarily aimed at providing a stable income for retirees.