The length of time of the annuity is very important in accumulating wealth within an annuity. What other factor also has this effect?
A) the time line
B) interest rate for compounding
C) the present value
D) the future value

Question

Quizplus · Accepted Answer

The interest rate for compounding significantly affects the accumulation of wealth within an annuity because it determines how much the invested money grows over time. Higher interest rates lead to more significant growth due to compounding.

The Length of Time of the Annuity Is Very Important