In Comparing an Ordinary Annuity and an Annuity Due, Which

question 120

Multiple Choice

In comparing an ordinary annuity and an annuity due, which of the following is true?

• A) The future value of an annuity due is always greater than the future value of an otherwise identical ordinary annuity.
• B) The future value of an ordinary annuity is always greater than the future value of an otherwise identical annuity due.
• C) The future value of an annuity due is always less than the future value of an otherwise identical ordinary annuity, since one less payment is received with an annuity due.
• D) All things being equal, one would prefer to receive an ordinary annuity compared to an annuity due.

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Definitions:

Recurrent Nightmares

Repeatedly occurring disturbing dreams that can impact an individual's quality of sleep and overall mental health.

Retribution Bias

The tendency to retaliate or seek vengeance beyond a rational or fair level in response to perceived wrongs.

Underlying Defense Mechanism

Psychological strategies brought into play by the unconscious mind to manipulate, deny, or distort reality in order to defend against feelings of anxiety and unacceptable impulses.

Aggressive Behaviors

Actions or conduct that are hostile, assertive, or forceful, often intending to dominate or harm others.