The future value of an annuity is
1. larger the higher the rate of interest
2. smaller the higher the rate of interest
3. larger the greater the number of years
4. smaller the greater the number of years
A)1 and 3
B)1 and 4
C)2 and 3
D)2 and 4

Question

Quizplus · Accepted Answer

The future value of an annuity increases with both a higher rate of interest and a greater number of years, as both factors contribute to more compound interest being earned over time.

The Future Value of an Annuity Is