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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