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You ate considering two equally risky annustics, each of which pays 55,000 per year for 10 yearn. Invesitment ORD is an ordiaary (or deferted) ananuity,

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You ate considering two equally risky annustics, each of which pays 55,000 per year for 10 yearn. Invesitment ORD is an ordiaary (or deferted) ananuity, waile Investment DUE is an arnuity due. Which of the follawing statements is COPBRCT7 The gresent value of ORD mait ereeed the prevent valee of DUE, but the futur value of ORD may be less than the future value of DUH The piesent value of DUE etceeds the present value of OND, while the furure value of DUI is less than the furure value of ORD. If the going fate of interest decresies from 10% ta 0%, the difference betwees the presend value of ORD asd the peesent vatue of nuE wauld remain cuastant. You are considering two equally risky annuitio, each of which pays 55,000 per ycar for 10 ycarn. Inveatrient ORD is an ordinary (er deferred) annuity, while Investment DUE is mn annuity due. Which of the following statements is CORRECT? The present value of ORD must exceed the present value of DUE, but the futture value of ORD may be less than the future value of DUE. The present value of DUE exceeds the present value of ORD, while the future value of DUB is less than the fiture value of OKD. X The present value of ORD exceeds the present value of DUR, and the future value of ORD alro execeds the future value of DUE The present value of DUE exceeds the present value of ORD, and the future valoe of DUE alro eveeds the firture value af ORD. If the going rate of interest decreases from 10% to 0%, the difference between the present value of ORD and the present value af DUE would remain constant

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