Assuming all else the same, the ___________ of an annuity due will be _____________ that of an ordinary annuity.
A) future value; greater than
B) present value; equal to
C) future value; less than
D) present value; less than

Question

Quizplus · Accepted Answer

The future value of an annuity due will be greater than that of an ordinary annuity because payments are made at the beginning of each period, allowing for more compounding.

Assuming All Else the Same, the ___________ of an Annuity