Which One of the Following Statements Is True Concerning Annuities

question 18

Multiple Choice

Which one of the following statements is true concerning annuities?

• A)All else equal, an ordinary annuity is more valuable than an annuity due.
• B)All else equal, a decrease in the number of payments increases the future value of an annuity due.
• C)An annuity with payments at the beginning of each period is called an ordinary annuity.
• D)All else equal, an increase in the discount rate decreases the present value and increases the future value of an annuity.
• E)All else equal, an increase in the number of annuity payments decreases the present value and increases the future value of an annuity.

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