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You are equating two annuities. Annuity A pays $100 at the finish of each month for 10 years. Annuity B pays $100 at the beginning of each month for 10 years. The rate of return on both annuities is 8 percent. Which one of the subsequent statements is correct given this information?
The present value of Annuity A is equivalent to the present value of Annuity B.
Annuity B will pay one more payment than Annuity A will.
The future value of Annuity A is superior to the future value of Annuity B.
Annuity B has both a higher present value as well as a higher future value than Annuity A.
Annuity A has a higher future value however a lower present value than Annuity B.

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M9372144

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