The Future Value of an Annuity Will Increase If the Interest

question 80

True/False

The future value of an annuity will increase if the interest rate goes up,but the present value of the same annuity will decrease as the interest rate goes up.

---

Definitions:

Written Contract

A legally binding agreement that has been formulated in writing and signed by the parties involved.

Parol Evidence

A rule in contract law that prevents parties from presenting extrinsic evidence to alter or add to the terms of a written agreement.

Insurance Claim

A formal request by a policyholder to an insurance company for coverage or compensation for a covered loss or policy event.

Written Policy

A formal document outlining the guidelines, rules, and objectives for specific actions or behaviors within an organization.