What Happens to the Future Value of an Annuity as the Interest

question 27

Multiple Choice

What happens to the future value of an annuity as the interest rate increases?

• A)It decreases.
• B)It stays the same.
• C)It increases.
• D)None of the above.

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Definitions:

Frequency Distribution

A summary of how often each value in a set of data occurs, often displayed in a table or graphically as a histogram.

Relative Frequency

The proportion of times a value occurs in a data set to the total number of data points.

Bar Chart

A graphical representation of data using bars of different heights or lengths proportional to the values they represent.

Pie Chart

A graphical representation of data that divides a whole into slices to illustrate numerical proportion.