Explain the difference between an ordinary annuity and an annuity due. (Multiple Choice) A. Ordinary annuities earn simple interest. Annuities due earn compound interest. B. Annuities due have higher interest rates than ordinary annuities. C. Annuities due have lower interest rates than ordinary annuities. D. With an ordinary annuity, payments are made at the end of each period. With an annuity due, payments are made at the beginning of each period. E. Ordinary annuities have fixed interest rates. With an annuity due, the interest rate may change.
Explain the difference between an ordinary annuity and an annuity due. (Multiple Choice) A. Ordinary annuities earn simple interest. Annuities due earn compound interest. B. Annuities due have higher interest rates than ordinary annuities. C. Annuities due have lower interest rates than ordinary annuities. D. With an ordinary annuity, payments are made at the end of each period. With an annuity due, payments are made at the beginning of each period. E. Ordinary annuities have fixed interest rates. With an annuity due, the interest rate may change.
Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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Question
Explain the difference between an ordinary annuity and an annuity due. (Multiple Choice)
A. Ordinary annuities earn simple interest. Annuities due earn compound interest.
B. Annuities due have higher interest rates than ordinary annuities.
C. Annuities due have lower interest rates than ordinary annuities.
D. With an ordinary annuity, payments are made at the end of each period. With an annuity due, payments are made at the beginning of each period.
E. Ordinary annuities have fixed interest rates. With an annuity due, the interest rate may change.
B. Annuities due have higher interest rates than ordinary annuities.
C. Annuities due have lower interest rates than ordinary annuities.
D. With an ordinary annuity, payments are made at the end of each period. With an annuity due, payments are made at the beginning of each period.
E. Ordinary annuities have fixed interest rates. With an annuity due, the interest rate may change.
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