What happens to the future value of an annuity as the interest rate increases?
A)It decreases.
B)It stays the same.
C)It increases.
D)None of the above.

Question

Quizplus · Accepted Answer

As the interest rate increases, the future value of an annuity also increases. This is because a higher interest rate means that more interest will accumulate on the payments made into the annuity, leading to a larger future value.

What Happens to the Future Value of an Annuity as the Interest