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

question 140

Multiple Choice

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

• A) The number of periods decreases.
• B) The interest rate decreases.
• C) The amortization schedule decreases.
• D) The effective rate is calculated over fewer years.

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Definitions:

Ethnicity

A classification based on shared cultural, linguistic, or ancestral traits.

Admission Decision

The outcome of an application process by which an institution or organization decides whether to allow an individual to enter as a member, student, employee, etc.

Discharge Delayed

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Major Surgery

Surgical procedures that involve significant risk, extensive alteration of body parts, or substantial recovery periods.