annuities are identical with the exception of the payment dates. Annuity A pays on the first of each month while annuity B pays on the last day of each month. Which one of the following statements is correct concerning these two annuities?
a.Both annuities are of equal value today.
b.Annuity B is an annuity due.
c.Annuity A has a higher future value than annuity B.
d.Annuity B has a higher present value than annuity A.
e.Both annuities have the same future value as of ten years from today.
Chosen Answer:
Both annuities have the same future value as of ten years from today.
by: Art m
on: 26th November 08
3 Comments
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In this economic environment. Keep or take the cash and bury it. Annuity companies may not be around for ten years. Peace.
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I would think e.
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Both annuities have the same future value as of ten years from today.
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