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Describe what happens to present value when: a. The interest rate decreases b. The number of compounding periods decreases c. The amount of time between
Describe what happens to present value when: a. The interest rate decreases b. The number of compounding periods decreases c. The amount of time between today and the time an amount is received increases 3. The annual rate for an investment that lasts 5 years is 12%. Thinking about the equation for future value, what would the 'r' and 't' be when compounding is: a. Semiannual b. Quarterly c. Monthly 4. You are looking at investing the same amount over a specified period of time at a specific interest rate (an annuity). Would the future value of this investment increase or decrease when: a. The interest rate used decreases b. The frequency of payments increases c. The time over which the investment was made increases
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