Thinking Mathematically (6th Edition)

Published by Pearson
ISBN 10: 0321867327
ISBN 13: 978-0-32186-732-2

Chapter 8 - Personal Finance - 8.5 Annuities, Methods of Saving, and Investments - Exercise Set 8.5: 8

Answer

True

Work Step by Step

True With the same interest rate, compounding period, and time period, a lump-sum deposit will generate more interest than an annuity. Assuming that the amount of money deposited as a lump-sum is equal to the total amount of money deposited in the annuity, this statement is true.
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