An Annuity and an Annuity Due with the Same Number

question 61

Multiple Choice

An annuity and an annuity due with the same number of payments have the same future value if r = 10%. Which one has the higher payment?

• A)They both must have the same payment since the future values are the same.
• B)There is no way to tell which has the higher payment.
• C)An annuity and an annuity due cannot have the same future value.
• D)The annuity has the higher payment.
• E)The annuity due has the higher payment.

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Definitions:

Amniocentesis

A medical procedure used in prenatal diagnosis, involving the extraction of a small amount of amniotic fluid for testing.

Noninvasive Prenatal Testing

A screening test used to detect certain genetic conditions in a fetus using a sample of the mother's blood.

Chorionic Villus Sampling

A prenatal test where a sample of chorionic villi is taken from the placenta for genetic testing.

Ultrasound

A medical imaging technique that uses high-frequency sound waves to visualize internal body structures, often used for diagnostic and therapeutic purposes.