Augustine is interested in whether he should purchase an


Augustine is interested in whether he should purchase an annuity or an annuity due today. The annuity that he is considering will pay $50 per year starting in 2 year and ending in 5 years. The annuity due will begin payments of $50 per year for 4 years starting in 1 year. With a discount rate of 9.23%, which investment should he purchase today and why?

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Financial Management: Augustine is interested in whether he should purchase an
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