Given identical data,the future value of annuity due is always greater than the future value of an ordinary annuity.

Question

Quizplus · Accepted Answer

An annuity due is a type of annuity where the payments are made at the beginning of each period, while in an ordinary annuity the payments are made at the end of each period. Because the payments in an annuity due are made earlier, they have more time to accrue interest, resulting in a higher future value compared to an ordinary annuity. Therefore, given identical data, the future value of an annuity due is always greater than the future value of an ordinary annuity.

Given Identical Data,the Future Value of Annuity Due Is Always