What decreases pv of annuity?

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1187071

2026-05-10 19:45

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The present value (PV) of an annuity decreases with an increase in the discount rate, as higher rates reduce the value of future cash flows. Additionally, a longer time frame until the cash flows begin can also decrease the PV, as the value of money diminishes over time. Finally, receiving fewer payments or smaller payment amounts will also lower the present value of the annuity.

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