1. All else held constant, the future value of an annuity will increase if you:
decrease both the interest rate and the time period.
increase the time period
decrease the present value.
decrease the payment amount.
decrease the interest rate
2. Big Dom’s Pawn Shop charges an interest rate of 27.9 percent per month on loans to its customers. Like all lenders, Big Dom must report an APR to consumers.
What is the effective annual rate?