Marcus is making a comparison between two annuities Annuity A pays $400 at the end of each month for 7 years Annuity B pays $400 at the beginning of each month for 7 years The rate of return on both annuities is 8 percent Which one of the following statements is correct given this information The present value of Annuity A is equal to the present value of Annuity B Annuity B will pay one more payment than Annuity A will The future value of Annuity A is greater than the future value of Annuity B Annuity A has a higher future value but a lower present value than Annuity B Annuity B has both a higher present value and a higher future value than Annuity A

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Question: Marcus is making a comparison between two annuities. Annuity A pays $400 at the end of each month for 7 years. Annuity B pays $400

Marcus is making a comparison between two annuities. Annuity A pays $400 at the end of each month for 7 years. Annuity B pays $400 at the beginning of each month for 7 years. The rate of return on both annuities is 8 percent. Which one of the following statements is correct given this information?

The present value of Annuity A is equal to the present value of Annuity B.
Annuity B will pay one more payment than Annuity A will.
The future value of Annuity A is greater than the future value of Annuity B.
Annuity A has a higher future value but a lower present value than Annuity B.
Annuity B has both a higher present value and a higher future value than Annuity A.

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