Question: Which of the following will decrease the future value of a lump sum ( for example, the FV of $ 5 0 0 to be

Which of the following will decrease the future value of a lump sum (for example, the FV of $500 to be received N years from today).Check all of the answer choices that are correct. This is an all or nothing question.Thus, if a and b are both correct and you do not put both of these or you include one of the other choices, you will receive 0 points.
An increase in the number of compounding periods per year (for example, the compounding changes from one time per year to 12 times per year).
An increase in the interest rateA decrease in the interest rate/ An increase in NA decrease in the lump sum amount.
An increase in the lump sum amount.
An decrease in the number of compounding periods per year (for example, the compounding changes from four times per year to one time per year).
A decrease in N

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!