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:

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