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Elan Coil [88]
2 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]2 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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Edington Electronics Inc. produces and sells two models of pocket calculators, XQ-103 and XQ-104. The calculators sell for $14 a
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Answer:

In the question, we are not given information with respect to sales costs, so we can only find total gross sales:

Sales Budget fist 2 quarters of the year

Product  Sales Price  Sales Q1 Sales Q2  Total gross sales

XQ-103     $14             22,590    27,710      $704,200

XQ-104     $27             14,880    16,200      $839,160

                                                                     $1,53,360

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2 years ago
1.2 Which of the following is not a nominal account?
bonufazy [111]

Answer:

i can say is capital

Explanation:

8 0
3 years ago
What is the purpose of clarifying butter?
Naily [24]

it's b (: it's simply regular butter but with the milk solids removed.

6 0
3 years ago
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The income section of a budget will include your
Oksanka [162]
I think the answer is D
3 0
2 years ago
Which of the following makes notes receivable different from accounts receivable? (Select all that apply.) Multiple select quest
Goryan [66]

The following makes notes receivable :

- Notes receivable are formal written contracts.

- Notes receivable have a stronger legal claim.

- Notes receivable are interest bearing.

<h3>What are Notes Receivable?</h3>

Notes receivable are a balance sheet item that records the value of promissory notes that a business is owed and should receive payment for. A written promissory note gives the holder, or bearer, the right to receive the amount outlined in the legal agreement. Promissory notes are a written promise to pay cash to another party on or before a specified future date.

If the note receivable is due within a year, then it is treated as a current asset on the balance sheet. If it is not due until a date that is more than one year in the future, then it is treated as a non-current asset on the balance sheet.

Often, a business will allow customers to convert their overdue accounts (the business’ accounts receivable) into notes receivable. By doing so, the debtor typically benefits by having more time to pay.

Learn more about Notes Receivable on:

brainly.com/question/26965875

#SPJ4

5 0
2 years ago
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