題組內容

2. Time value of money

(a) You are considering two annuities, both of which pay a total of $40,000 over the life of the annuity. Annuity A pays $4,000 at the end of each year for the next 10 years. Annuity B pays $2,000 at the end of each year for the next 20 years. Which annuity has the greater value today? (9%)