Which of the Following Will Increase the Future Value of an Annuity

question 22

Multiple Choice

Which of the following will increase the future value of an annuity?

• A)The number of periods increases.
• B)The amount of the annuity increases.
• C)The interest rate increases.
• D)All of these will increase the future value of an annuity.

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Definitions:

Y Predictor

A variable used in statistical models to predict another variable, often denoted as the independent variable.

Regression Line

A straight line that best fits the data on a scatterplot, showing the average relationship between the independent and dependent variables.

Slope

The gradient or tilt of a line on a graph, indicating the relationship between two variables.

Y-Intercept

This refers to the point on a graph where the line crosses the Y-axis, typically representing the value of the dependent variable when the independent variable is zero.