Increasing the interest rate will have what effect on an, Financial Management

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Increasing the interest rate will have what effect on an

1. Increasing the interest rate will have what effect on an ordinary annuity?

A. Present value will decrease and the future value will increase

B. Both the present and future values will decrease

C. Both the present and future values will increase

D. Present value will increase and the future value will decrease

2. How much must you deposit today to be able to make 12 annual payments of $50,000 each if you can earn 4.3% and the first payment is in seven years?

A. $461,190

B. $358,240

C. $343,471

D. $593,726

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