All other things held constant, the present value of a given annual annuity decreases as the...

Question

Question

All other things held constant, the present value of a given annual annuity decreases as the number of periods per year increases.

a. True b. False

business finance

Answer 1

Answer #1

Ans TRUE

All other things held constant, the present value of a given annual annuity decreases as the number of periods per year increases.

Annuity PV Factor (End of Year) =	P [ 1 - ( 1 + r )^-n ]
	r

Answer 2

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