Problem: Which of the following 10 year annuities has the greatest present value? Assume all the annuities have the same interest rate.
1. An annuity that pays $1,000 at the end of each year?
2. An annuity that pays $500 at the beginning of every six months?
3. An annuity that pays $1,000 at the beginning of each year?
4. An annuity that pays $500 at the end of every six months?