l6ysdiyaAshleig l6ysdiyaAshleig
  • 24-04-2017
  • Business
contestada

The present value of an annuity falls when interest rates rise

Respuesta :

pkmnmushy
pkmnmushy pkmnmushy
  • 28-04-2017
That is true, if you raise the rate then the present value falls.Of course, the present value will fall assuming the existence of positive cash flows. This annuity present value is divided into four pieces which are: the present value (PV), the periodic cash flow (C), the discount rate (r), and the number of payments, or the life of the annuity, (T). 
Answer Link

Otras preguntas

what types of images were Islamic book illustrators allowed to depict
Rectangle swim pool was 9 meters wide with surface area of 90 square meters. What's length of the pool?
what is 5 4/8 in decimal form
the holy roman empire included most of modern... a) germany b) spain c) russia d) england
Which is the tallest mountain peak in Africa? A. Mount Kilimanjaro B. Mount Fuji C. Mount Cameroon D. Mount Everest
If an infant is born to a drinking mother without any observable evidence of abnormal development, can we conclude that there was no detrimental impact of alcoh
How do you calculate experimental mole ratio?
Which quotation sums up Herbert Hoover's view of the Great Depression in 1933? A. “…the only thing we have to fear is fear itself. B. “This nation asks for a
Which one of the following is an indicator that a source may not be accurate? A. The writing is sub-par or contains errors. B. The author is using emotionally c
what did Irish and Hungarian nationalists have in common