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

question 147

Multiple Choice

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

• A) The discount rate increases.
• B) The discount rate decreases.
• C) The number of periods the annuity is received decreases.
• D) The final payment diminishes.

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Definitions:

Referent Power

A form of influence based on the leader's or individual’s ability to cultivate loyalty and attraction, leading others to identify with them.

Legitimate Power

Power that is recognized as deserved or earned, often stemming from a person's position, role, or through the respect they command.

Person-Focused Leaders

Leaders who prioritize the development, well-being, and personal interests of their team members in their leadership approach.

Task-Oriented Leaders

are leaders who focus primarily on the completion of tasks and the achievement of objectives, often emphasizing efficiency and role clarity.