Which of the following will increase the future value of an annuity?
A) The number of periods increases.
B) The amount of the annuity increases.
C) The interest rate increases.
D) All of the these will increase the future value of an annuity.

Question

Quizplus · Accepted Answer

All three factors - increasing the number of periods, increasing the amount of the annuity, and increasing the interest rate - will increase the future value of an annuity. This is because each of these factors allows for more contributions to accumulate interest over a longer period of time, resulting in a higher overall future value.

Which of the Following Will Increase the Future Value of an Annuity