Consider an annuity with six $1,500 payments, with the first payment occurring one year from now. Based on the current interest rate, the PV of the annuity is $7,280.00 and the FV is $10,573.84. What will happen to the PV and FV if the interest rate doubles? PV will increase: FV will increase PV will decrease; FV will decrease PV will increase; FV will decrease PV will increase: FV stays the same PV will decrease: FV will increase PV will decrease; FV will stay the same Trina must choose between two options. She can either receive $700 today or $745 two years from now. If the interest rate is zero (r=0%), which option should she pick? $700 today Both options are equivalent $745 in two years Not enough information to decide At an interest rate of 8%, Maddie is willing to pay up to $19,500 to receive positive cash flows $C in three years and $D in six years. If the interest rate decreases, what is the maximum amount Maddie would be willing to pay today for the same future cash flows C and D ? less than $19,500 Not enough information to determine more than $19,500 $19,500