CHAPTER 1

Sep 30, 2010 · A) The annuity due B) The ordinary annuity C)Since we do not know the interest rate, we cannot find the value of the annuities and hence cannot tell which is better D)Either one because they have the same present value . 2. Which of the following investments has the highest effective annual return [EAR]? Assume all CDs are of equal risk. A) A bank CD that pays 8 percent interest … ................
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