alleryStart learning →To turn the PV of an ordinary annuity into annuity-due PV, you?
ASubtract i from it
BAdd i to the PV
CMultiply by (1 + i)
DDivide by (1 + i)
Answer & Solution
Correct answer: C. Multiply by (1 + i)
Each payment comes one period earlier, so the value is scaled up by (1 + i).
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