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Elan Coil [88]
3 years ago
9

You are comparing two annuities that offer quarterly payments of $2,500 for five years and pay .75 percent interest per month. Y

ou will purchase one of these today with a single lump sum payment. Annuity A will pay you monthly, starting today, while annuity B will pay monthly, starting one month from today. Which one of the following statements is correct concerning these two annuities?These two annuities have both equal present and future values.These annuities have equal present values but unequal future values.Annuity B has a smaller present value than annuity A.Annuity A has a smaller future value than annuity B.Annuity B is an annuity due.
Business
1 answer:
shepuryov [24]3 years ago
7 0

Answer:

The answer is: Annuity B has a smaller present value than annuity A.

Explanation:

The present value is the current value of a future cash flow. Money today is worth more than money earned tomorrow or in a year. So the sooner you receive a payment, its present value will be higher.

For this question, annuity A starts paying TODAY (higher present value), while annuity B starts paying in ONE MONTH.

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"A customer buys a $1,000 par 4 ½% Treasury Bond, maturing July 1, 2042, at 102-8 on Thursday, February 6th in a regular way tra
Andrei [34K]

Answer:

37 days

Explanation:

Given the following :

Date of purchase = 6th of February

Bond interest is paid on January 1st and July 1st.

Since, the treasury bond was purchased on the 6th of February, the the accrued or accumulated interest will be calculated from January 1st till the purchase date (6th of February).

(Number of days in January) + 6 days in February

Number of days in January = 31

Days of accrued interest = (31 + 6) = 37

3 0
3 years ago
You�ve observed the following returns on crash-n-burn computer�s stock over the past five years: 17 percent, �4 percent, 20 perc
8_murik_8 [283]
Given:
average inflation rate: 2.7%
average t-bill rate: 5.4%
returns
17%
- 4%
20%
12%
10%

Average returns = (17% - 4% + 20% + 12% + 10%) / 5 = 11%

Average real risk-free rate using the Fisher equation.

 The average real risk-free rate was: (1 +R) = (1 +r)(1 +h)
f = <span>(1.054/1.027) – 1
f = 1.0263 - 1
f = 0.0263 or 2.63%</span>

The average real risk-free rate over this time period is 2.63%
4 0
3 years ago
Becky asks her friend Maggie to walk her dog for her, and Maggie agrees. While out walking, the dog gets away from Maggie and ru
mezya [45]

Answer:A. Becky is liable for the damages to Mr. Edwards' garden, because she exercised control over her agent, Maggie.

Explanation:This is a situation where a person is working under the instructions of another, Becky will take the full responsibility for the damage done by the Dog to Mr. Edwards garden.

This can be seen also in conditions where a principal gives instructions or job to an Agent, the actions of the agent will directly impact the Principal as the Agent is working according to the directives of the principal.

7 0
3 years ago
Which element of the business model addresses what a firm provides that other firms do not and cannot?
BaLLatris [955]

Value proposition addresses what a firm provides that other firms do not and cannot.

A company is a commercial enterprise, usually set up as a partnership, that provides professional services such as legal and accounting services. Corporate theory assumes that companies exist to maximize profits.

To describe a person as steadfast means that he acts in a way that does not change his mind, or that he is in control. She had to be firm with him. "I don't want to see you anymore."

A firm can be a company. B. A consumer goods store that offers physical products. It can also represent a service provider such as a hairdresser. The term firm may refer to any for-profit business, but it is more commonly used to describe businesses in specific industries such as law or accounting.

Learn more about firm here:brainly.com/question/25491204
#SPJ4

7 0
2 years ago
When is the acquisition program baseline prepared?
Liono4ka [1.6K]

Answer:

The Acquisition Program Baseline (APB) is developed by the Program Manager (PM) before the initiation of a program for all Acquisition Category (ACAT) programs and depicts the current condition of a program.

Explanation:

8 0
4 years ago
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