There Are Three Factors That Affect the Future Value of an Annuity

question 35

Essay

There are three factors that affect the future value of an annuity. Explain what these three factors are and discuss how an increase in each will impact the future value of the annuity.

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Definitions:

Industry Average

The standard or average benchmark of performance, costs, or pricing for businesses within a specific industry.

Competitive Average

A benchmarking tool that compares a company's performance metrics with those of its competitors to identify areas for improvement.

Pro Forma Financial Statements

Financial statements that project what a firm’s financial condition will be in the future.

Income Statements

Financial statements that show a company's revenue, expenses, and profits over a specific period of time, typically a quarter or a year.