If you are investing money, you should prefer an ______ and if you are borrowing money you should prefer an _____.

Question

Quizplus · Accepted Answer

When investing money, an annuity due is preferred because payments are made at the beginning of each period, allowing the investment to grow for a longer period. When borrowing, an ordinary annuity is preferred because payments are made at the end of each period, delaying outflows.

If You Are Investing Money, You Should Prefer an ______