What happens to the future value of some fixed dollar amount invested today as the interest rate decreases? Why?
What happens to the present value of some fixed dollar amount to be received in the future as the interest rate increases? Why?
What happens to the present value of some fixed dollar amount to be received in the future as the time to receive the money decreases? Why?
Which will have a higher present value, assuming the same discount rate, same # of payments, and same amount of payments, an ordinary annuity or an annuity due? Why?
Which will have a higher future value, assuming the same discount rate, same # of payments, and same amount of payments, an ordinary annuity or an annuity due? Why?
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