The Future Value of an Annuity Due Is Always Greater

question 48

True/False

The future value of an annuity due is always greater than the future value of an otherwise identical ordinary annuity.

---

Definitions:

Negligence

The absence of the diligence that an ordinarily prudent individual would demonstrate in comparable conditions.

Insurer

A company or individual that provides coverage, through the payment of premiums, against specified risks to life, health, or property.

Insurance Company

A business entity that provides financial protection or compensation to policyholders in exchange for premiums, against specified risks or losses.

Paid Out

This term typically refers to money that has been disbursed or expended, often relating to payments made for goods, services, debts, or claims.