The Future Value of an Annuity Will Be Larger If

question 41

Multiple Choice

The future value of an annuity will be larger if
1. the annuity is an ordinary annuity
2. the annuity is an annuity due
3. the payments are made at the beginning of the year
4. the payments are made at the end of the year

• A) 1 and 3
• B) 1 and 4
• C) 2 and 3
• D) 2 and 4

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Definitions:

Indirect Approach

A communication method where the main point or message is not directly stated at the beginning, often used in writing or speech to build suspense or be polite.

Buffer Statement

A neutral or positive statement used to cushion the impact of a negative message or bad news in communication.

Promotion Drive

A campaign or effort to increase awareness or sales of a product or service, or to elevate an individual's position within an organization.

Additional Funds

Extra money required or available beyond what was originally budgeted or expected.