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Which One of the Following Is Correct Concerning Ordinary Annuities

Question 305

Multiple Choice

Which one of the following is correct concerning ordinary annuities and annuities due?


A) An ordinary annuity will have a larger present value than an annuity due given that the annuities are otherwise identical.
B) An annuity due will have a larger future value than an ordinary annuity given that the annuities are otherwise identical.
C) An annuity due applies only to equal payments made in annual increments.
D) The majority of annuities are annuities due.
E) An ordinary annuity is one where the payment occurs at the beginning of the period.

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