Question: Assuming all other factors ane the same ( paymerts , rate of refurn, etci, whty will an investor heve a greater future waloe with an
Assuming all other factors ane the same paymerts rate of refurn, etci, whty will an investor heve a greater future waloe with an annuly d annuty?
An annury due pays a higher annual rate of interest.
Beceure a payment is made at the beginning of the year, interest starts soonet.
Theve is no difference in the future value of these two types of annuity.
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