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Which of the following changes would increase the present value of an annuity of future payments? (check all that apply)

 
 

Present value of an annuity is inversely related to the interest rate (r) and positively related to the number of periods (n) and the payment. So a decrease in the interest rate would increase the PV. An increase in the number of periods and the payment would also increase the PV.

 

Present value of an annuity is inversely related to the interest rate (r) and positively related to the number of periods (n) and the payment. So a decrease in the interest rate would increase the PV. An increase in the number of periods and the payment would also increase the PV.

 
 

Present value of an annuity is inversely related to the interest rate (r) and positively related to the number of periods (n) and the payment. So a decrease in the interest rate would increase the PV. An increase in the number of periods and the payment would also increase the PV.

 

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