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Which one of the following statements related to annuities and perpetuities is correct? O An ordinary annuity is worth more than an annuity due given
Which one of the following statements related to annuities and perpetuities is correct? O An ordinary annuity is worth more than an annuity due given equal annual cash flows for 10 years at 7 percent interest, compounded annually. O The present value of a perpetuity cannot be computed but the future value can. A perpetuity comprised of $100 monthly payments is worth more than an annuity of $100 monthly payments provided the discount rates are equal. Most loans are a form of a perpetuity. Perpetuities are finite but annuities are not
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