Multiple Choice
Which is NOT correct regarding an ordinary annuity and annuity due?
A) An annuity is a series of equal payments.
B) The present value of an ordinary annuity is less than the present value of an annuity due (assuming interest rate is positive) .
C) As the interest rate increases,the present value of an annuity decreases.
D) As the length of the annuity increases,the future value of the annuity decreases.
Correct Answer:
Verified
Correct Answer:
Verified
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