How can we break down the valuation of a deferred annuity

Reference no: EM131318529

How can we break down the valuation of a deferred annuity into manageable parts for computation purposes? Which has the highest present value if the payments and number of payments are identical, an ordinary annuity or an annuity due? If you are offered two investments, one that pays 5% simple interest per year and one that pays 5% compound interest per year, which would you choose? Why?

Reference no: EM131318529

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