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Increase the length of time involved

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Compounding and Period: As you increase the length of time involved, what happens to future values? What happens to present values?

The present value of annuity will increase as well as the future value when you increase the length of time.

Interest Rates: What happens to the future value of an annuity if you increase the rate r? What happens to the present value?

If there is positive cash flow the present value will fall and the future value will rise.

Need help with understanding these answers to both questions in detail.

Reference no: EM132150454

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