Present value of annuity: consider the following case Amy of annuity. Int rate. Period in years 18000. 6%. 9
1) the present value of the ordinary annuity is .....
2) the present value of the annuity due is ...,,,,
3) compare your findings in part 1 and 2. All else being identical which type of annuity yields a higher present value? Choose A OR B as answer
A) ordinary annuity because all else being identical it will yield a higher present value
B) annuity die because all else being identical it will yield a higher present value