All other things held constant,the present value of a given annual annuity decreases as the number of periods per year increases.

Question

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The present value of an annuity is the sum of the present values of each of the individual payments. The present value of each payment is calculated by dividing the payment by the discount factor, which is (1 + r/n)^(nt), where r is the annual interest rate, n is the number of periods per year, and t is the number of years. As the number of periods per year increases, the discount factor increases, which means that the present value of each payment decreases. Therefore, the present value of the annuity also decreases.

All Other Things Held Constant,the Present Value of a Given