The Present Value of an Annuity Due, as Compared to the Present

question 20

Multiple Choice

The present value of an annuity due, as compared to the present value of an ordinary annuity of the same length and interest rate, will

• A)sometimes be greater and sometimes be smaller.
• B)always be the same.
• C)always be smaller.
• D)always be greater.

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Definitions:

Time Proportioning Control

A control method where the output is turned on and off at a rate proportional to the error value, used in PID controllers, for precise control.

On Time

Refers to the condition or state of being operational or active at the expected or scheduled time.

Off Time

Represents the period when a system or component is not operating or is inactive.

PLCs

Abbreviation for Programmable Logic Controllers, specialized computers used to control industrial machines and processes.