Annuities having the same interest rate


Problem: Which of the following 10 year annuities has the greatest present value? Assume all the annuities have the same interest rate.

An annuity that pays $1,000 at the end of each year?

An annuity that pays $500 at the beginning of every six months?

An annuity that pays $1,000 at the beginning of each year?

An annuity that pays $500 at the end of every six months?

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Finance Basics: Annuities having the same interest rate
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