The Present Value of an Annuity Stream of $100 Per

question 21

Multiple Choice

The present value of an annuity stream of $100 per year is $614 when valued at a 10 percent rate.By approximately how much would the value change if these were annuities due?

• A)An increase of $10
• B)An increase of $61
• C)An increase of $100
• D)Unknown without knowing number of payments.

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