What happens to the future value of an annuity if you increase the rate r? What happens
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What happens to the future value of an annuity if you increase the rate r? What happens to the present value?
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If you increase the rate r the future value of an ann uity will increase This is becau...View the full answer
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Corporate Finance
ISBN: 9781260772388
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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he present value of an annuity is the current value of future payments from an annuity, given a specified rate of return, or discount rate. The higher the discount rate, the lower the present value of the annuity
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