1-What happens to the future value of some fixed dollar amount invested today as the interest...

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Finance

1-What happens to the future value of some fixed dollar amountinvested today as the interest rate decreases? Why?

2-What happens to the present value of some fixed dollar amountto be received in the future as the interest rate increases?Why?

3-What happens to the present value of some fixed dollar amountto be received in the future as the time to receive the moneydecreases? Why?

4-Which will have a higher present value, assuming the samediscount rate, same # of payments, and same amount of payments, anordinary annuity or an annuity due? Why?

5-Which will have a higher future value, assuming the samediscount rate, same # of payments, and same amount of payments, anordinary annuity or an annuity due? Why?

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As per rules I am answering the first 4 subparts of the question 1 Future valuePresent value1Ratenumber of periods As the interest rate declines the future value of a certain amount of    See Answer
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1-What happens to the future value of some fixed dollar amountinvested today as the interest rate decreases? Why?2-What happens to the present value of some fixed dollar amountto be received in the future as the interest rate increases?Why?3-What happens to the present value of some fixed dollar amountto be received in the future as the time to receive the moneydecreases? Why?4-Which will have a higher present value, assuming the samediscount rate, same # of payments, and same amount of payments, anordinary annuity or an annuity due? Why?5-Which will have a higher future value, assuming the samediscount rate, same # of payments, and same amount of payments, anordinary annuity or an annuity due? Why?

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