You are comparing two annuities.Annuity A pays $100 at the end of each month for 10 years.Annuity B pays $100 at the beginning of each month for 10 years.The rate of return on both annuities is 8 percent.Which one of the following statements is correct given this information?
A) The present value of Annuity A is equal to the present value of Annuity B.
B) Annuity B will pay one more payment than Annuity A will.
C) The future value of Annuity A is greater than the future value of Annuity B.
D) Annuity B has both a higher present value and a higher future value than Annuity A.
E) Annuity A has a higher future value but a lower present value than Annuity B.
Correct Answer:
Verified
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