# Compare an annuity due with an ordinary annuity. The payments for both are made annually and are of the same dollar amounts.

**MULTIPLE CHOICE QUESTION:**

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Compare an annuity due with an ordinary annuity. The payments for both are made annually and are of the same dollar amounts. The two annuities also have the same duration in years and the same discount rate. Which of the following statements is /are correct?

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a. The present value of the ordinary annuity is greater.

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b. The present value of the annuity due is greater.

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c. The future value of the ordinary annuity is greater.

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d. The future value of the annuity due is greater.

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