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The Higher the Rate Used in Determining the Future Value

Question 61

Multiple Choice

The higher the rate used in determining the future value of an annuity,


A) the smaller the future value at the end of the period.
B) the greater the future value at the end of the period.
C) the greater the present value at the beginning of the period.
D) None of these-the interest rate has no effect on the future value of the annuity.

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