Assuming all else the same,the future value of an annuity due will be _____________ that of an ordinary annuity.
A)Greater than
B)Equal to
C)Less than
D)Incomparable to

Question

Quizplus · Accepted Answer

An annuity due has payments that occur at the beginning of each period, while an ordinary annuity has payments that occur at the end of each period. Because the payments of an annuity due have more time to compound before the end of the annuity, the future value will be greater than that of an ordinary annuity.

Assuming All Else the Same,the Future Value of an Annuity