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- The process that determines the present value of a single payment or stream of payments to be received is an annuity. True or false?1. What is an annuity and how does it differ from a perpetuity? Discuss the difference between an ordinary annuity and an annuity due. Please answer this question in detail.1. Which statement is FALSE? A. Future value annuity is an example of annuity. B. A perpetuity is an annuity that has maturity period. C. An annuity is a series of equal payment made for a specified number of years. D. Ordinary annuity is an annuity in which the cash flows occur at the end of each period.
- If you're calculating the present value of future payments, you're using an annuity. Is this statement accurate or incorrect?The process that determines the present value of a single payment or stream of payments to be received is ________. A. compounding B. discounting C. annuity D. lump-sumIf you know the present value of an ordinary annuity, how can you find the PV of thecorresponding annuity due?
- What is the primary difference between an ordinary annuity and an annuity due? Group of answer choices ordinary annuity only relates to future values the timing of the periodic payment annuity due only relates to future values the interest rate1. How is the future value related to the present value of a single sum? 2. How is the present value of a single sum related to the present value of an annuity? 3. Why does money have a time value? 4. Does inflation have anything to do with making a dollar today worth more than a dollar tomorrow? 5. What is a deferred annuity?Which of following formulas is used to calculate the present value of a perpetual annuity? Seleccione una: a. P= f / (1+i)^n b. P= f / (i - g) c. P= a / (i - g) d. P= a / (1+i)^n e. F = P * (1+i)^n
- What’s the difference between an ordinary annuity and an annuity due?12. If the present value annuity factor is 3.8896, what is the present value annuity factor for an equivalent annuity due if the interest rate is 9 percent? A. 3.5684B. 4.2397C. 3.8896D. 5.3127What is the difference between an ordinary annuity and an annuity due?