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You as an individual investor, want to have a equal return of $600 each year for four years with an interest rate of 6.00% compounded
You as an individual investor, want to have a equal return of $600 each year for four years with an interest rate of 6.00% compounded annually. You are offered two investment options to invest and you wish to compare these two different investment options which are designed as annuity contracts as; ordinary annuity and annuity due. What is the dollar difference between ordinary annuity and annuity due contracts?
A. $124.75
B. $2,203.81
C. $144.60
D. $2,079.06
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