Ask Question
BusinessBusiness
29 February, 02:30

The present value of an annuity falls when interest rates rise

+3
Answers (1)
  1. 29 February, 02:51
    0
    That is true, if you raise the rate then the present value falls. Of course, the present value will fall assuming the existence of positive cash flows. This annuity present value is divided into four pieces which are: the present value (PV), the periodic cash flow (C), the discount rate (r), and the number of payments, or the life of the annuity, (T).
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The present value of an annuity falls when interest rates rise ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
What cultural factors affect business activities in Vietnam?
Answers (1)
A deduction from adjusted gross income for yourself, your spouse, and qualified dependents is: A. the standard deduction. B. a tax credit. C. an itemized deduction. D. an exemption.
Answers (1)
A firm is most likely to pursue a global standardization strategy when
Answers (1)
Skippy loves peanut butter. Skippy reads on the internet that 75 percent of the peanut crop in the South has been wiped out by drought, and that this will cause the price of peanuts to more than double by the end of the year. As a result, a.
Answers (1)
Does anyone know anything about accounting?
Answers (1)
New Questions in Business
If you were using a simple exponential smoothing forecast model (alpha value equal to 0.30) that generated a forecast of 25.
Answers (1)
McMurphy Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 12,000 units of this part are as follows: 36) Direct materials Direct labor Variable factory overhead Fixed
Answers (1)
The basic financial statements include all of the following except: Select one: a. Management's Discussion & Analysis b. Fund-basis financial statements c. Notes to the financial statements d. Government-wide statements e.
Answers (1)
The whole idea behind mass production was to: a. produce goods of the highest possible quality. b. give producers the maximum flexibility to respond to customer preferences. c. make large quantities of a limited variety of products at very low cost.
Answers (1)
Provenzano Corporation manufactures two products: Product B56Z and Product D32N. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools.
Answers (1)
Home » Business » The present value of an annuity falls when interest rates rise
Sign Up Forgot Password?