The present value of an annuity due of t payments of $1 per period is the same as

Multiple Choice

• (C) (1 + r) times the present value of an equivalent ordinary annuity.

• (A) the present value of an ordinary annuity of t payments.

• (B) $1 plus the present value of an ordinary annuity with t -1 payments.

• None of the answers are correct.

• (B) and (C).