The Higher the Rate Used in Determining the Future Value

question 35

Multiple Choice

The higher the rate used in determining the future value of an annuity,

• A) the smaller the future value at the end of the period.
• B) the greater the future vale at the end of the period.
• C) the greater the present value at the beginning of the period.
• D) none of these-the interest rate has no effect on the future value of the annuity.

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Definitions:

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The state of being aware of and able to think about one's own existence, sensations, thoughts, surroundings, and experiences.

Accessibility

The ease with which information, services, or physical spaces can be reached or utilized, particularly by people who experience disadvantages.

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A connection or relationship between ideas, objects, or events, often formed through experience or learning.

Mainstream Media

Traditional forms of mass communication, such as newspapers, television, and radio, that reach a large audience and have significant influence on public opinion and culture.