Which of the following statements is TRUE?
A) If compounding at a positive interest rate,the future value of an annuity due is always less than the future value of an otherwise identical ordinary annuity.
B) If compounding at a positive interest rate,the future value of an annuity due is always greater than the future value of an otherwise identical ordinary annuity.
C) If compounding at a positive interest rate,the future value of an ordinary annuity is always greater than the future value of an otherwise identical annuity due.
D) If compounding at an interest rate of 0%,the future value of an annuity due is always greater than the future value of an otherwise identical ordinary annuity.
E) None of the above
Correct Answer:
Verified
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