You have the opportunity to invest in several annuities, which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities have the same positive interest rate.
- An annuity that pays $1,000 at the end of each year
- An annuity that pays $1,000 at the beginning of each year
- An annuity that pays $500 at the beginning of every six months
- An annuity that pays $500 at the end of every six months