This topic contains a solution. Click here to go to the answer

Author Question: You are considering two equally risky annuities, each of which pays $6,000 per year for20years. ... (Read 200 times)

jrobl3

  • Full Member
  • ***
  • Posts: 167
You are considering two equally risky annuities, each of which pays $6,000 per year for20years. Investment ORD is an ordinary (or deferred) annuity, while Investment DUE is an annuity due. Which of the following statements is correct?

The present value of ORD exceeds the present value of DUE,whilethe future value of ORD is less than the future value of DUE.


The present value of DUE exceeds the present value of ORD, while the future value of DUE is less than the future value of ORD.


The present value of ORD exceeds the present value of DUE, and the future value of ORD also exceeds the future value of DUE.


The present value of DUE exceeds the present value of ORD, and the future value of DUE also exceeds the future value of ORD.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by jrobl3 on Aug 7, 2023

hiyayyay

  • Full Member
  • ***
  • Posts: 204
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 55% of students answer this correctly




 

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

On average, the stomach produces 2 L of hydrochloric acid per day.

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

The largest baby ever born weighed more than 23 pounds but died just 11 hours after his birth in 1879. The largest surviving baby was born in October 2009 in Sumatra, Indonesia, and weighed an astounding 19.2 pounds at birth.

For a complete list of videos, visit our video library