Which Is Greater,the Present Value of a $1,000 Five-Year Ordinary

question 123

Multiple Choice

Which is greater,the present value of a $1,000 five-year ordinary annuity discounted at 10%,or the present value of a $1,000 five-year annuity due discounted at 10%?

• A)The ordinary annuity is worth more with a present value of $3,790.79.
• B)The annuity due is worth more with a present value of $4,169.87.
• C)The ordinary annuity is worth more with a present value of $4,169.87.
• D)The annuity due is worth more with a present value of $4,586.85.

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Definitions:

Prereproductive

Describes individuals in a population who are not yet of age or biological capability to produce offspring.

Reproductive Age Groups

Categories of individuals of different ages within a population that are capable of reproduction, often crucial for understanding population dynamics and fertility rates.

Zero Population Growth

A demographic balance where the number of people in a specified population neither grows nor decreases, due to an equal number of births and deaths.

Birth Rate

A statistical measure representing the number of births in a population over a specific time period, often per 1,000 people per year.