Answer:
True
Explanation:
There are two types of annuity, ordinary annuity and annuity due.
The ordinary annuity is calculated as:
Future Value = [tex]Principal \times \frac{(1+ i)^n - 1}{i}[/tex]
Whereas Future Value of annuity due is calculated as:
Future Value = (1 + i) [tex]\times[/tex] [tex]Principal \times \frac{(1+ i)^n - 1}{i}[/tex]
That is (1+i) [tex]\times[/tex] Future Value of ordinary annuity.
Therefore, the provided statement is true.
