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Find out annuities having the greatest present value


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

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

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

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

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

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Finance Basics: Find out annuities having the greatest present value
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