Multiple Choice
In comparing an ordinary annuity and an annuity due, which of the following is true?
A) The future value of an annuity due is always greater than the future value of an otherwise identical ordinary annuity.
B) The future value of an ordinary annuity is always greater than the future value of an otherwise identical annuity due.
C) The future value of an annuity due is always less than the future value of an otherwise identical ordinary annuity, since one less payment is received with an annuity due.
D) All things being equal, one would prefer to receive an ordinary annuity compared to an annuity due.
Correct Answer:
Verified
Correct Answer:
Verified
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