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You are comparing two annuities that offer annual payments of $2,500 for five years and pay 2 percent interest per year. You will purchase one
You are comparing two annuities that offer annual payments of $2,500 for five years and pay 2 percent interest per year. You will purchase one of these annuity investments today with a single lump sum payment. Annuity A will pay you annually, starting today, while Annuity B will pay annually, starting one year from today. Which one of the following statements is correct concerning theses two annuities? Multiple Choice You will pay the same amount today for both of these annuities. These two annuities have equal future values. Annuity A is an ordinary annuity and Annuity B is an annuity due. You will pay more today for Annuity B than you will for Annuity A. You will pay more today for Annuity A than you will for Annuity B
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