Which of the Following Statements Is TRUE

question 126

Multiple Choice

Which of the following statements is TRUE?

• A) If compounding at a positive interest rate, the future value of an annuity due is always less than the future value of an otherwise identical ordinary annuity.
• B) If compounding at a positive interest rate, the future value of an annuity due is always greater than the future value of an otherwise identical ordinary annuity.
• C) If compounding at a positive interest rate, the future value of an ordinary annuity is always greater than the future value of an otherwise identical annuity due.
• D) If compounding at an interest rate of 0%, the future value of an annuity due is always greater than the future value of an otherwise identical ordinary annuity.
• E) None of the above

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Definitions:

Recessional Moraine

A ridge of debris deposited at the point of furthest retreat of a glacier or ice sheet.

Continental Ice Sheet

A vast expanse of ice covering a large portion of a continental area, often thousands of kilometers wide and extremely thick.

Teardrop-Shaped Hills

Elongated hills formed by the erosion of underlying soft rock covered by a harder rock cap, often found in arid climates.

Hanging Valley

A glacial valley whose mouth is higher than the bottom of a larger glacially carved valley it joins.