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.

---

Definitions:

Collectivist Cultures

Societies that prioritize the group over individual goals and values, emphasizing interdependence among its members.

Social Support

Assistance and comfort received from friends, family, and others, which is crucial for mental health and overcoming difficult times.

Adaptation-level Phenomenon

The psychological process by which individuals adjust their expectations and perceptions based on past experiences or reference points.

Problem-focused Coping

A coping strategy where one directly tackles a stressful situation by finding solutions to the problem causing the stress.