Mathematics, 09.01.2021 16:20 Kalistaaaaaaa
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Describe the effect an increase in i, the interest rate applied to the present value, has on the monthly payment Pin
the formula
P=PV 1/1(1+i) -
a. An increase in i, the interest rate, will not change P, the monthly payment.
b. An increase in i, the interest rate, will create an increase in P, the monthly payment.
c. An increase in i, the interest rate, will create a decrease in P, the monthly payment.
d. An increase in i, the interest rate, can increase or decrease P, the monthly payment,
depending on the value of PV.
Answers: 2
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Describe the effect an increase in i, the interest rate applied to the present value,...
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