Which of the following statements is false? A decrease in the interest rate and

Question

Which of the following statements is false?

A decrease in the interest rate and an increase in the number of time periods would increase the value of an annuity present value interest factor.

An increase in the amount of an annuity payment will decrease the present value of the annuity.

The difference between an ordinary annuity and an annuity due is the timing of the annuity payments.

The future value of an annuity will decrease when either the number of periods decreases or the interest rate declines.

A decrease in the interest rate and an increase in the number of time periods would increase the value of an annuity present value interest factor.

An increase in the amount of an annuity payment will decrease the present value of the annuity.

The difference between an ordinary annuity and an annuity due is the timing of the annuity payments.

The future value of an annuity will decrease when either the number of periods decreases or the interest rate declines.

Explanation / Answer

An increase in the amount of an annuity payment will decrease the present value of annuity.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.