Which of the following statements is true?

a The future value of an annuity would be greater if funds are invested at the beginning of each period instead of at the end of each period.

b An annuity is a series of equal payments that are made, or received, forever.

c The effective annual rate (APR) of a loan is higher the less frequently payments are made.

d The future value of an annuity would be greater if funds are invested at the end of each period rather than at the beginning of each period.

You will receive $2,000 on January 1st 2004, on January 1st in 2005 and January 1st 2006. Which of the following expressions will calculate your value at time of January 1st 2003?

a PV = $2,000[1.06]^-1 + $2,000[1.06]^-2 + $2,000[1.06]^-3

b PV = $2,000[1.06]^1 + $2,000[1.06]^2 + $2,000[1.06]^3

c PV = $2,000[1.06]^0 + $2,000[1.06]^1 + $2,000[1.06]^2

d PV = $2,000 + $2,000[1.06]^-1 + $2,000[1.06]^-2