Which Is Greater,the Present Value of a $1,000 Five-Year Ordinary

question 123

Multiple Choice

Which is greater,the present value of a $1,000 five-year ordinary annuity discounted at 10%,or the present value of a $1,000 five-year annuity due discounted at 10%?

• A)The ordinary annuity is worth more with a present value of $3,790.79.
• B)The annuity due is worth more with a present value of $4,169.87.
• C)The ordinary annuity is worth more with a present value of $4,169.87.
• D)The annuity due is worth more with a present value of $4,586.85.

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Definitions:

Budget Surpluses

Situations where income or revenues exceed expenditures in a given budget period, implying financial health and the possibility of investment or debt reduction.

Technological Talent

Individuals or groups possessing specialized skills and knowledge in technology fields, contributing to innovation and productivity in the economy.

Universal Public Education

A system of education where government funds and provides free school education universally and compulsorily to all children up to a certain age.

Agricultural Surplus

Excess production in agriculture beyond what the producer's community needs for consumption.