Which One of the Following Will Increase the Present Value

question 92

Multiple Choice

Which one of the following will increase the present value of an annuity,other things equal?

• A) Increasing the interest rate
• B) Decreasing the interest rate
• C) Decreasing the number of payments
• D) Decreasing the amount of the payment

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Definitions:

IR Absorption

The process where molecules absorb specific frequencies of infrared light, causing molecular vibrations that are characteristic of functional groups within the molecule.

Broad Absorption

A phenomenon where a material or molecule absorbs a wide range of wavelengths or frequencies.

IR

Short for Infrared Spectroscopy, a technique used to identify and study chemicals by analyzing the infrared light absorbed by molecules.

Carbonyl

A functional group characterized by a carbon atom double-bonded to an oxygen atom (C=O), central to many organic reactions and compounds.