Consider two annuities with the same payment frequency and term. If one is an ordinary annuity and the other is an annuity due, we can say that: both annuities will have the same number of payments the annuity due will have one extra payment O the annuity due will have one less payment

Consider two annuities with the same payment frequency and term. If one is an ordinary annuity and the other is an annuity due, we can say that: both annuities will have the same number of payments the annuity due will have one extra payment O the annuity due will have one less payment

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 11QTD

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Question

Consider two annuities with the same payment frequency and term. If one is an ordinary
annuity and the other is an annuity due, we can say that:
both annuities will have the same number of payments
the annuity due will have one extra payment
the annuity due will have one less payment

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