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 vale 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.

Question

Quizplus · Accepted Answer

The higher the rate, the more interest the annuity earns during the period, resulting in a larger future value at the end of the period.

The Higher the Rate Used in Determining the Future Value