Question: You are comparing two annuities. Annuity A pays $ 1 0 0 at the end of each month for 1 0 years. Annuity B pays
You are comparing two annuities. Annuity A pays $ at the end of each month for years. Annuity pays $ at the beginning of each month for years. The rate of returr
one of the following statements is correct given this information?
Multiple Choice
The present value of Annuity is equal to the present value of Annuity
Annuity B will pay one more payment than Annuity A will.
The future value of Annuity is greater than the future value of Annuity
Annuity has both a higher present value and a higher future value than Annuity
Annuity A has a higher future value but a lower present value than Annuity B
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