Annuity a Has a Greater Present Value Than Annuity B

question 26

Multiple Choice

Annuity A has a greater present value than annuity B when cash flows are discounted using the same positive interest rate for each annuity.Which annuity will have the larger future value if compounded at the same interest rate?

• A)Annuity A will have a larger future value.
• B)Annuity B will have a larger future value.
• C)The future values will be the same.
• D)There is not enough information to determine which annuity will have a greater future value.

---

Definitions:

Participation

The action of taking part in an activity or event; involvement in a task or decision-making process.

Group Therapy

A form of psychotherapy involving one or more therapists working with several individuals at the same time, encouraging interaction and support among participants.

Dependent Variable

In experimental and statistical research, the variable being tested and measured, expected to be influenced by an independent variable.

Protein-Enriched Diet

A nutritional plan high in proteins, designed to support muscle growth, repair, and overall health.