Mar Suppose you are evaluating two annuities. They are identical in every way, except that one is an ordinary annuity an

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Mar Suppose You Are Evaluating Two Annuities They Are Identical In Every Way Except That One Is An Ordinary Annuity An 1 (28.75 KiB) Viewed 29 times

Mar Suppose you are evaluating two annuities. They are identical in every way, except that one is an ordinary annuity and one is an annuity due (i.e. payment is due immediately at the beginning rather than end of each period). Assuming an interest rate of 10%, which of the following is true? O a. The ordinary annuity must have a higher future value than the annuity due. b. The two annuities will differ in present value by the amount of exactly one of the annuity payments. OC. The annuity due must have the same present value as the ordinary annuity. Od. The ordinary annuity must have a lower present value than the annuity due.