5. Which one of the following statements is correct? A. The present value of an annuity increases when the interest rate increases. B. The present value of an annuity increases when the interest rate decreases. C. The present value of an annity is unaffected by the number of the annuity payments. D. The future value of an annuity is unaffected by the amount of each annuity payment. E. The future value of an annuity increases when the interest rate decreases. Answer: 6. A series of equal cash flows that occur at the beginning of each time period for a limited number of time periods is called a(n) : A. perpetuity. B. perpetuity due. C. ordinary annuity. D. annuity due. E. beginning annuity