Question
Which of the following statements is TRUE? Statement 1: The future value of an annuity and the present value of an annuity will both increase
Which of the following statements is TRUE?
Statement 1: The future value of an annuity and the present value of an annuity will both increase as you increase the interest rate.
Statement 2: The present value of a single cash flow to be received at some point in the future decreases as you increase the interest rate, but the present value of an annuity increases as you increase the interest rate.
Statement 3: The present value of a cash flow to be received at some point in the future will decrease as you increase the length of time between now and when the cash flow is received.
Multiple Choice
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Statement 1 only
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Statement 2 only
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Statement 3 only
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Statements 1 and 2 only
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Statements 1 and 3 only
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Statements 2 and 3 only
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Financial Management Theory And Practice
Authors: Prasanna Chandra
10th Edition
9353166527, 978-9353166526
