Which of the changes would increase the present value

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Problem 1: How much money would you have had to invest on 1/1/2010 in a savings account that yields 1% interest (compounded annually) to have $100 on 1/1/2013?

Option 1: $97.00

Option 2: $98.03

Option 3: $97.06

Option 4: $98.00

Option 5: $100.00

Problem 2: Which of the following changes would increase the present value of an annuity of future payments? (check all that apply)

Option 1: Increase in the interest rate

Option 2: Increase in the amount of the annuity payments

Option 3: Decrease in the interest rate

Option 4: Decrease in the number of years over which the annuity payments are received

Option : Increase in the number of years over which the annuity payments are received

Reference no: EM132645979

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