Which of the Following Is Worth More

question 48

Multiple Choice

Which of the following is worth more?

• A) Future value of an ordinary annuity of PMT dollars per year for n years discounted at i percent
• B) Future value of an annuity due of PMT dollars per year for n years discounted at i percent
• C) Both are worth the same amount
• D) Cannot be determined from the information given

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Definitions:

Guidelines

Recommended practices or directives designed to steer actions or decisions in specific situations.

Convey

To communicate or make known information, ideas, or feelings.

Visual

Pertaining to sight or vision, or presented in a form that can be seen or perceived with the eyes.

Tell, Show, Tell Rule

A communication technique where information is first stated, then demonstrated or illustrated, and finally reiterated to enhance understanding.