What is a Roth IRA?

Q: what is the value of perpetuity?

A: It is a vital concept of corporate finance; it is that annuity which has regular payment started on…

Q: Discuss Present Value of Perpetuities?

A: Perpetuity is the stream of cash flows or payments that are made at equal intervals that do not have…

Q: What is Simple Annuity? (payment interval, and interest period, time of payment, duration)

A: Given Simple annuity Payment interval Interest period Time of payment  Duration…

Q: How to Use Compound Interest Factors for Annuities

A: Compound interest factor for annuities is used to compute the present and future value of annuities,…

Q: what is the difference between annuity and annuity due?

A: An annuity is a series of cash flows wherein an equal amount is paid every period which can be…

Q: What is the difference between the present value of an annuity and the futurevalue of an annuity?

A: Annuity refers to a series of payments made at regular interval of time.

Q: What does the formula developed for calculating compound interest express?

A: Answer: Compound interest is nothing but interest earned on interest. In case of simple interest…

Q: In what situations is interest capitalized?

A:

Q: Define ordinary annuity.

A: An ordinary annuity refers to the payment of equal amount made after the completion of the time…

Q: What interest rates should be used in determining the amount of interest to be capitalized? How…

A:

Q: What is interest coverage ratio?

A: The interest coverage ratio is the ratio which shows the ability of the company to pay the interest…

Q: What is an annuity?

A: Financial Management: In layman’s words, financial management is the management of the finance or…

Q: interest

A: Exact Interest = P*r*(t/365) Ordinary Interest = P*r*(t/360)

Q: Which are the Borrower’s Rights to Reinstate?

A: The person that takes something from another person with a promise to return back at a specified…

Q: Identify the MARR (or external interest rate)?

A: A minimum acceptable rate of return (MARR) is the all-out advantage that a speculator wants to pick…

Q: what is an annuity? Provide an example

A: Annuity is an important concept in finance especially in the context of time value of money. Annuity…

Q: How to Calculate Compound Interest Factors and explain with example?

A: It is interest ascertained based on the starting principal and frequently contains all the collected…

Q: Write the methods of Calculating Interest?

A: Methods of calculating interest: The basic and fundamental methods for calculating interests are…

Q: What is the net present value of an annuity?

A: Net present value is defined as the temporal variation in the present value of cash inflows and…

Q: What is interest rate?

A: Answer: At a particular situation, an interest rate determines how much money a borrower promises to…

Q: Explain different types of Annuity and perpetuity concept.

A: An annuity is a contract whereby a lump-sum payment is exchanged for a periodic payment which can be…

Q: What is ordinary annuity?

A: Ordinary annuity: An ordinary annuity is a sequence of equivalent payments made at last of…

Q: what is the value of annuity?

A: Time value of money means that the amount of money received in the present period will have more…

Q: What’s the difference between an ordinary annuity and an annuity due?

A: Annuity is the fixed sum paid on annual basis. In other words, annuity is the series of payment…

Q: What is meant by annuity? What are the types of annuity? How does it differ from perpetuity?

A: Annuity is a series of regular payments that are made periodically at the end of the year or…

Q: Why is share in a considered a is perpetuit

A: In finance a perpetuity refers to that financial asset or that financial security that goes on…

Q: How is Compound Interest calculated?

A: Compound interest refers to the addition of interest amount to the principal. The concept of…

Q: Explain the Present Value of an Annuity?

A: The present worth of the regular payment or the annuity that is received or paid in the future is…

Q: what is the formula for compounding interest?

A: Compound interest can be defined as the interest earned on principal amount and on all previous…

Q: What is the difference between simple and compound interest? Give examples.

A: Simple interest: It is the interest calculated on the principal of the loan and the account holder…

Q: What is future value interest factor for an annuity?

A: The concept that helps to evaluate the future or present value of the cash flow is term as the time…

Q: What is the factor form equation to get EUAB/Annuity (A) ?

A: Interest Rate = 5% N = 7 Cash Flows: Year Cash Flow 0   1   2   3   4 1000.00 5…

Q: What is the Rate of Interest?

A: Given  P= 10000 A=5000 n=1year r=?

Q: How do I determine the present value of an annuity by single computation?

A: The capital is the backbone of the company, and the company will be willing to raise the capital for…

Q: What is the internal rate of return? How is it used? How does it relate to the concept of compound…

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: What are the Classifications of Annuity.

A: An Annuity is a periodic payment which are made from time to time from a lump sum corpus.

Q: What would be the value the payment?

A: In this question, we will use the excel function for calculating the maturity value of loan from the…

Q: What is another way of saying "Interest earned on interest"?

A: "Interest earned on interest" means the interest earned on the interest amount which was earned on…

Q: at is annuity and perpetuity?  Explain in single sentence please

A: An annuity is a series of uniform cash flows received or paid at an equal interval over a period of…

Q: How did you calculate the all items excluding interest?

A: Cash budget represents the outflow and inflow of cash and takes into consideration the beginning…

Q: Illustrate the methods of calculating Interest?

A: Traditionally, there are two methods of calculating interest : 1. Simple interest rate method 2.…

Q: hat is the difference between simple interest and compound interest?

A: The difference between simple interest and compound interest is as follows-

Q: What is the relationship between the present value of a single amount and the present value of an…

A: Solution-   The present value of an annuity is that the current price of future payments from an…

Q: Which of the following is considered an annuity?

A: Annuity refers to equal amount of payment done over a period of time.

Q: Describe the methods of calculating interest?

A: In the finance industry, every decision revolves around the interest rate. This is a crucial…

Q: What’s the difference between simple interest and add-on interest?

A: Interest is the amount of extra payments a borrower has to make to its lender as a return for…

Q: STATE THE SIMPLE INTEREST FORMULA.

A: Simple interest is used to compute the interest charged on a loan. The interest is computed on the…

Q: Is real estate mortgage a real contract?

A: When two parties are get into contract for the purpose of sale and purchase in order to agreeing…

Q: Define Annuity.

A: Definition:   Present value: This is the amount of future value reduced or discounted at a rate of…

Q: What are the methods of calculating Interest?

A: Interest is an additional amount received on a deposited amount for a deposited period. It increases…

Q: What is the Cumulative interest payment?

A: Cumulative interest payment is the sum of all previous interest payments that are made for an…