Annuity A has a greater present value than annuity B when cash flows a

Annuity A has a greater present value than annuity B when cash flows are discounted using the same positive interest rate for each annuity. Which annuity will have the larger future value if compounded at the same interest rate?

A) Annuity A will have a larger future value.
B) Annuity B will have a larger future value.
C) The future values will be the same.
D) There is not enough information to determine which annuity will have a greater future value.

ANSWER

A