The future value of an annuity due for any given interest rate and number of periods is always less than the future value of an annuity due for the same interest rate and number of periods.

Question

Quizplus · Accepted Answer

The future value of an annuity due for any given interest rate and number of periods is always higher than the future value of an ordinary annuity for the same interest rate and number of periods. This is because in an annuity due, each payment is made at the beginning of the period, which means it has more time to earn interest compared to an ordinary annuity where each payment is made at the end of the period.

The Future Value of an Annuity Due for Any Given