You have the opportunity to invest in several annuities. Which of the 10 year annuities has the greatest value?
Posted by MarkJun 6
Which of the following 10 years annuities has the greatest present value? Assume all the annuities have the same interest rate.
A. an annuity that pays 0 at the end of every six months.
B. an annuity that pays 0 at the beginning of every six months.
C. an annuity that pays ,000 at the end of each year.
D. an annuity that pays ,000 at the beginning of each year.
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The correct answer is B. In you cannot explain why, you need to reread your textbook.