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 216 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?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

For a complete list of videos, visit our video library