1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mote1985 [20]
3 years ago
15

Which one of the following statements related to annuities and perpetuities is correct? Multiple Choice An ordinary annuity is w

orth more than an annuity due given equal annual cash flows for 10 years at 7 percent interest, compounded annually. A perpetuity comprised of $100 monthly payments is worth more than an annuity of $100 monthly payments provided the discount rates are equal. Most loans are a form of a perpetuity. The present value of a perpetuity cannot be computed but the future value can. Perpetuities are finite but annuities are not.
Business
1 answer:
Tatiana [17]3 years ago
6 0

Answer:

A perpetuity comprised of $100 monthly payments is worth more than an annuity of $100 monthly payments provided the discount rates are equal.

Explanation:

There is the basic difference of time duration in the payments. Under perpetuity the payments are for an unlimited period, and under annuity the period is defined.

As the payments are indefinite in perpetuity the amount will be higher in comparison to a limited period payments under annuity, also provided the interest rate is same for both.

Thus, the chosen statement is correct.

You might be interested in
In the United States today what gives money its value
VMariaS [17]

Answer:

It can give money value today but it reallys depends because if you are trying to say money give us value to help us pay for medicare then yes. In order for us to afford medicare. You need the Goverments support especally if you an need for support or you have someone is need.

Explanation:

4 0
3 years ago
Of the four sources of cash listed below, which can be found in the balance sheet?a. funds provided by operations.b. funds provi
My name is Ann [436]

Answer: b. funds provided by borrowing.

c. funds provided by the sale of assets.

d. funds provided by issuing common or preferred stock.

Explanation:

The financial statement consists of two main components which are the balance sheet and the income statement. The balance sheet simoly shows the financial standing of a firm.

Of the options, those that can found in the balance sheet are:

b. funds provided by borrowing.

c. funds provided by the sale of assets.

d. funds provided by issuing common or preferred stock.

5 0
3 years ago
The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its ass
Setler [38]

Answer:

1.The cost of a hard drive installed in a computer = Direct Material Cost

Explanation:

Direct Material relates to the basic inputs required to make the final good.

Here, for the information it is provided that, PC Works assembles custom computers, which are supplied by various manufacturers.

Since the main business of PC Works is to assemble the computers, installing a hard disk will be the main component of service, thus, It is part of direct material.

5 0
3 years ago
A 15 year, $1,000 par value bond has an 8% semi-annual payment coupon. The bond currently sells for $925. if the yield to maturi
Monica [59]

Answer:

Explanation:

First, find the YTM of the bond using the following inputs on a financial calculator;

N = 15*2 = 30 semiannual payments

PV= -925

Semiannual coupon payment; PMT = (8%/2)*1000 = 40

FV = 1,000

then CPT I/Y = 4.458%

Annual rate = 4.458% *2 = 8.92%

Next, use the YTM above and change the time to maturity to (15-5 )= 10 years or 20 semiannuals. Therefore, the price at year 5 will be as follows;

N = 10*2 = 20

Semiannual coupon payment; PMT  = 40

FV = 1,000

Semiannual rate; I/Y = 4.458%

then CPT PV = 940.206

The price at year 5 will be $940.21

7 0
3 years ago
Morningstar serves three key constituents: individual investors, financial advisors, and institutional investors. institutional
ivolga24 [154]
Institutional investors include PENSION PLANS.
Institutional investors are those entity which pool money together to purchase securities, real properties and other investments. Examples of institutional investors include: banks,pensions, insurance companies, hedge funds, investment advisers, mutual funds, etc.<span />
8 0
3 years ago
Other questions:
  • Exercise 3-5 Journal Entries and T-accounts [LO3-1, LO3-2] The Polaris Company uses a job-order costing system. The following tr
    5·1 answer
  • When a business asks "What business are we in?" they are: a. conducting an environmental analysis. b. defining their business mi
    15·1 answer
  • Prime Cuts was the brainchild of Karen Terrier, who guided all the marketing efforts of the product. She made the decisions rega
    13·1 answer
  • The distinction between a normal and an inferior good is A. when income​ increases, demand for a normal good increases while dem
    6·1 answer
  • You must decline an employee's request to telecommute three days per week. Which of the following statements best explains why t
    9·1 answer
  • Rank the steps of the (sandwich) ELISA procedure from first step to last step. Do not overlap any steps.
    11·1 answer
  • 15. If, in the economy described, government spending increases by $200 million, what will be the associated change in equilibri
    6·1 answer
  • Which of the following circumstances usually comes before a period of economic contraction?
    6·1 answer
  • How do you determine the acid-test ratio? The sum of cash and short-term investments divided by short-term debt. Current assets
    15·1 answer
  • The flow chart shows the order in which steps should be executed, and the diamond-shaped boxes indicate ______________. Select o
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!