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Which is greater, the present value of a $1,000 five-year ordinary annuity discounted at 10%, or the present value of a $1,000 five-year annuity due
Which is greater, the present value of a $1,000 five-year ordinary annuity discounted at 10%, or the present value of a $1,000 five-year annuity due discounted at 10%?
The ordinary annuity is worth more with a present value of $3,790.79.
The annuity due is worth more with a present value of $4,169.87.
The ordinary annuity is worth more with a present value of $4,169.87.
The annuity due is worth more with a present value of $4,586.85.
(I picked the first answer, I know how to solve for the ordinary annuity, but not the second part)
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