Vidyalelo
Commerce · Q219

Business Finance

Graduate and Post Graduate · Commerce · question 219

Q219

Which of the following statements is most correct?

A.
The future value of an annuity due to greater than an otherwise identical ordinary annuity
Answer
B.
A reduction in the discount rate will increase the future value of an otherwise identical cash flow stream
C.
Continuous compounding will result in a higher present value relative to an otherwise identical investment compounded monthly at the same nominal rate
D.
The FVIFA (i%, N periods) equals the sum of the PVIF (i%, n) for n = 1 to N periods

Answer: Option A

Solution

Answer: Option A
No explanation is given for this question Let's Discuss on Board