Question
please answer the question with solving if the accumulated value at time n of $1 per year paid continuously each year for n years is
please answer the question with solving
if the accumulated value at time n of $1 per year paid continuously each year for n years is 25% more than the accumulated value at time n of $1 per year paid at the end of each year for n years under the same interest rate assumption, then how does the present value at time zero of an annuity of $1 per year paid at the end of each year for n years compare to the present value of an annuity of $1 per year paid continuously each year for n years?
A. The annuity immediate is about 15% less
B. The annuity immediate is about 20% less
C. The annuity immediate is about 25% less
D. The annuity immediate is about 25% greater
E. Cannot be determined from the information given.
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