In the present value of an annuity due table, the factors ________.
A) increase as the interest rates increase, given a set number of periods
B) decrease as the periods increase, given a set interest rate
C) increase as the periods decrease, given a set interest rate
D) decrease as the interest rates increase, given a set number of periods

Question

Quizplus · Accepted Answer

In a present value of an annuity due table, the factors decrease as the interest rates increase, given a set number of periods, because higher interest rates reduce the present value of future cash flows.

In the Present Value of an Annuity Due Table, the Factors