If an Annuity Due and an Ordinary Annuity Have the Same

question 15

Multiple Choice

If an annuity due and an ordinary annuity have the same number of equal payments and the same interest rates, then

• A) the present value of the annuity due is less than the present value of the ordinary annuity.
• B) the present value of the annuity due is greater than the present value of the ordinary annuity.
• C) the future value of the annuity due is equal to the future value of the ordinary annuity.
• D) the future value of the annuity due is less than the future value of the ordinary annuity.

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Definitions:

Information

Data, facts, or details obtained through observation, research, or instruction that can be used for analysis, decision-making, or transmission of knowledge.

Plaintiff

The party who initiates a lawsuit seeking legal remedy for an injury or injustice they have suffered.

Arbitration

A method of resolving disputes outside the courts, where the parties to a dispute refer it to one or more persons (the arbitrators, arbiters, or arbitral tribunal), by whose decision (the award) they agree to be bound.

Court Trial

A court trial is a formal legal proceeding where a judge (and sometimes a jury) examines the evidence to decide whether the defendant should be held legally responsible for the charges brought against them.