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What factors affect the future value of an annuity?
  • a)
    The size of the periodic payments, the interest rate, and the number of periods.   
  • b)
    The initial principal amount and the annual interest rate.   
  • c)
    The type of financial institution offering the annuity.   
  • d)
    The location where the annuity is purchased and managed.
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
What factors affect the future value of an annuity?a)The size of the p...
The future value of an annuity is influenced by factoRs. such as the amount of each periodic payment (size), the interest rate at which the annuity is invested, and the duration or number of periods over which payments are made. These factoRs. determine how much the annuity will be worth at a future date.
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