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Aubrey just purchased an annuity that will pay $ 2 , 5 0 0 per month for five years. The first payment was issued today.
Aubrey just purchased an annuity that will pay $ per month for five years. The first payment was issued today. Bennett just purchased an annuity that will pay $ per month for five years. The first payment will be issued one month from today. Which one of the following statements is correct concerning these two annuities?
Multiple Choice
Both annuities are of equal value today.
Bennetts annuity is an annuity due.
Aubreys annuity has a higher present value than Bennetts
Bennetts annuity has a higher present value than Aubreys
Aubreys annuity is an ordinary annuity.
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