Given Positive Equal Annual Cash Flows and a Positive Interest

question 9

True/False

Given positive equal annual cash flows and a positive interest rate,the present value of an annuity will be greater than the sum of the cash flows.

---

Definitions:

Overconfidence

A cognitive bias that causes a person to believe that they are more capable or knowledgeable than they actually are.

Primacy Effect

The tendency to remember information at the beginning of a list better than information in the middle or at the end.

Distinctiveness

The quality of being unique or different in comparison to others, often making a person or object stand out.

Consistency

The quality of always behaving or performing in a similar manner, leading to predictability in actions or beliefs.