Which of the Following Is a True Statement Regarding the Future

question 7

Multiple Choice

Which of the following is a true statement regarding the future value of an annuity due?

• A)All else being equal,an annuity due will always generate a higher future value than an ordinary annuity.
• B)All else being equal,an annuity due will never generate a higher future value than an ordinary annuity.
• C)All else being equal,an annuity due will sometimes generate a higher future value than an ordinary annuity.
• D)All else being equal,an annuity due will generate a higher future value than an ordinary annuity only if interest is compounded monthly.

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