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

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

Quizplus · Accepted Answer

The present value of an annuity decreases as the number of compounding periods per year increases, because the discounting effect is stronger with more frequent compounding.

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