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QUESTION 22 Assume that you are analyzing a regular (deferred) annuity. If the annuity were changed to be an annuity due, which of the following

QUESTION 22

Assume that you are analyzing a regular (deferred) annuity. If the annuity were changed to be an annuity due, which of the following statements would be true?

A. The change from regular annuity to annuity due would cause the present value (PV) to increase.
B. The change from regular annuity to annuity due would cause the present value (PV) to decrease.
C. The change from regular annuity to annuity due would cause the future value (FV) to increase.
D. Both A and C are true.
E. Both B and C are true.

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