Why is it that in making same paymentsfor both ordinary annuity & that of annuity due, at the end we have different values?*

Q: If you're calculating the present value of future payments, you're using an annuity. Is this…

A: The question explains about  the present value of future payments, you're using an annuity.

Q: ompare an ordinary annuity with a prepayment annuity.

A: Annuity is a uniform series of cash flows over a given number of periods.

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: An annuity due typically has a higher present value than an ordinary annuity. • True O False

A: Since you have posted a question with multiple questions, we will solve the first question for you.…

Q: The procedure of compounding that increases without bound is called a contingent annuity. O TRUE O…

A: Contingent Annuity is an annuity where certain terms and conditions should be fulfilled by the…

Q: In order to recognize a question that requires fv of an annuity formula rather than just fv,…

A: Compounding: Compounding is the interest charged on interest. When any investment is made for…

Q: Why should we call an annuity a periodic payment problem?

A: Annuity- An annuity is a contract between an individual and an insurance company in which the…

Q: Why does an annuity due have a higher present value than a similar ordinaryannuity?

A: We need to understand the concepts of ordinary annuity and annuity due.

Q: What is an annuity? How does it differ from a lump sum payment?

A: Annuity:An annuity refers to a series of payments made at regular time intervals. These are…

Q: The future value of an ordinary annuity is less than that of an annuity due

A: The Statement is True . The future value of an ordinary annuity is less than that of an annuity…

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: Briefly explain the difference between Present value Annuity Due and Deferred Annuity [ explanation…

A: Present value is a current value of the amount to be received in future. The present value of an…

Q: General Annuity 1. Differentiate General Annuity and General Ordinary Annuity? 2. What is a General…

A: "Hi, Thanks for the question, since you asked multiple questions, we will provide the solution first…

Q: what is the most he should have paid for the annuity?

A: Annuity method is the method of making payments either in lump-sum or in series of payments. The…

Q: What is ordinary annuity?

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

Q: nuity due is an annuity whose payment is due at the END of each period. TRUE OR FALSE

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

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: For any investment, which will always have the higher future value : an ordinary annuity or an…

A: There are two types of annuity which are as follows: Annuity due: In contrast of ordinary annuity,…

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: Which of the statements is correct? a)FV of annuity due is greater than FV of regular annuity. b)FV…

A: Annuity means finite no. of payments which are same in size and made in equal intervals for the…

Q: What are the primary characteristics of an annuity? ­Differentiate between an “ordinary annuity” and…

A: Annuity represents a series of equal amount of payment / receipt made on particular interval for a…

Q: Discuss the present value of an annuity due with an example

A: Present value of an annuity An Annuity is a stream of regular periodic payments made or received for…

Q: What is an annuity? How is it defined? What is the difference between an ordinary annuity and an…

A: Annuity is defined as payments that are made at intervals. Monthly payments of insurance, amount…

Q: The process that determines the present value of a single payment or stream of payments to be…

A: Annuity means regular payment to be received from an investment.

Q: What are some instances of an ordinary annuity and annuity due in the real worl

A: This question tells about instances of an ordinary annuity and annuity due in the real world

Q: The difference between a general annuity, a prepayment annuity, a deferred annuity and a perpetual…

A: General Annuity refers to that annuity where the payment does not coincide with the period of…

Q: What is an annuity and how do you calculate the future value of an ordinary annuity and an annuity…

A: Annuity due would be considered as payment made in a series or lumpsum at the end of the period and…

Q: e. What is an annuity due? How does this differ from an ordinary annuity

A: Annuity refers to a series of equal payments made at the same interval.

Q: Explain the difference between an ordinary annuity and an annuity due.

A:

Q: Which of the following statements is true about the present value factors? a. The present value…

A: Option c>> The present value factor is also known as the discount factor.  Is correct  Present…

Q: what are examples of ordinary annuity and annuity due

A: As per the time value of money, a dollar is worth more today than the same dollar in future. It is…

Q: If the question doesn’t state when payments are made- is the default ordinary annuity?

A: Annnuity is the series of reccuring payment made at regular interval.

Q: The Present Value of an Ordinary Annuity is identical to the Present Value of an Annuity Due. This…

A: The present value is the value of cash flow stream or the fixed lump sum amount at time 0 or the…

Q: In what ways does an annuity differ from other types of investments? ­ Separate between a "ordinary…

A: The Answer :

Q: An annuity is a kind of financial contract. What's the difference between this and a one-time…

A: An annuity is a fixed series of payments over the period and contains a number of cashflows.

Q: The present value of a perpetuity cannot be computed, but the future value can. True or False?

A: Here we need to analyze whether the given statement is True or False.

Q: k in deferred annuity

A: k = nt - 1 where k = The number of compounding periods in a year  n = number of years we intend to…

Q: Derive the formula

A: Future worth or Future value refers to the value of current asset at some future point of time on a…

Q: Explain the difference between an ordinary annuity and an annuity due situation.

A: Annuity: It is amount of money payable to an individual at a periodic basis which is normally a…

Q: May I ask for an explanation of the question for a better understanding. Thank you! Which of the…

A: Time value concept is useful to evaluate any investment opportunities. One can understand what is…

Q: 1. What is an annuity and how does it differ from a perpetuity? Discuss the difference between an…

A: Annuity is a system of equal, periodic payments received or to be made for a constant number of…

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: Which of the following is considered an annuity?

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

Q: E? Future value of annuity are also applicable for future payments which have different amounts…

A: Step 1 The total amount of regular payments on a future date, taking into account a specific refund…