You are comparing two annuities. Both annuities pay the same amount for the same number of months. The discount rate is also identical. If the ordinary annuity is worth $26,500, the annuity due is worth:
A) $26,500 * (1 + r) .
B) $26,500 *(1 + r) t.
C) $26,500/(1 + r) .
D) $26,500 * [1 + (r/12) ].
E) $26,500/[1 + (r/12) ]t.
Correct Answer:
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