Question: You are comparing two annuities. Both annuities pay the same amount for the same number of months. The discount rate is also identical. If the

You are comparing two annuities. Both annuities pay the same amount for the same number of months. The discount rate is also identical. If the ordinary annuity is worth $26,500, the annuity due is worth:

A. $26,500 [1 + (r/12)].

B. $26,500/[1 + (r/12)]t.

C. $26,500 (1 + r)t.

D. $26,500/(1 + r).

E. $26,500 (1 + r).

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