The annuities described in parts a and b have the same total amount of money paid into them during the 5-year period, and both earn interest at the same nominal rate, yet the annuity in part b earns $101.75 more than the one in part a over the 5 years. Why does this occur? Ehrhardt, Michael C.. Corporate Finance: A Focused Approach (MindTap Course List) (p. 188). Cengage Learning. Kindle Edition.
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