Mathematics for FinancePYQ Nov. 20Question 1443 of 422
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Which of the following statements is True? (assume that the yearly cash flow? Are identical for both annuities)

Options

AThe present value of annuity due is greater than the present value of an ordinary annuity
BThe present value of an ordinary annuity is greater than the present value of an annuity due
CThe future value of an ordinary annuity is greater than the future value of an annuity due
DThe future value of an annuity due is equal to future value of an ordinary annuity.
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Correct Answer

Option cThe future value of an ordinary annuity is greater than the future value of an annuity due

All Options:

  • AThe present value of annuity due is greater than the present value of an ordinary annuity
  • BThe present value of an ordinary annuity is greater than the present value of an annuity due
  • CThe future value of an ordinary annuity is greater than the future value of an annuity due
  • DThe future value of an annuity due is equal to future value of an ordinary annuity.

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