Annuities Due and the Effective Rate of Interest (First define the concept of an annuity due and also explain whether the value of an annuity due will be greater than (or less than) the value of an ordinary annuity (everything else held constant). Finally, if you were a borrower (debtor) would you prefer to pay the effective rate (EFF) versus the stated annual rate (APR) when interest is compounded (that is, if m > 1)?