Need Help with this question. Is it a ordinary annuity or annuity due? and Why?

Consider two outcomes of your life: (1) you invest $1,000 per year in the stock market, starting when you’re 25, or (2) you invest $2,000 per year in the stock market starting when you’re 35. The average annual return on the stock market is 12%. How much more or less will you have when you're 65 with the second path vs. the first path?


Recommended Questions

Have an opinion?

What Girls Said 0

Be the first girl to share an opinion
and earn 1 more Xper point!

What Guys Said 1

  • $1,000 beginning at age 25 = $832,719.13
    $2,000 beginning at age 35 = $505,768.49

    • what is the value of N?
      I am confused about that basically

    • Show All
    • I am not a finance guy and I had one accounting course 43 years ago. I don't know the difference between annuity due and ordinary annuity.

    • Still thank you for your help. It meant a lot
      I will ask my teacher tomorrow. It might affect my assignment grade but asking him will definitely clear the confusion.

Recommended myTakes