You Are Considering Two Annuities,both of Which Pay a Total

question 129

Essay

You are considering two annuities,both of which pay a total of $20,000 over the life of the annuity.Annuity A pays $2,000 at the end of each year for the next 10 years.Annuity B pays $1,000 at the end of each year for the next 20 years.Which annuity has the greater value today?
Is there any circumstance where the two annuities would have equal values as of today?
Explain.

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