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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.

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FILL IN THE BLANK
Pepsi [2]

Answer:

In-store

Explanation:

Loyalty programs, special offers, and discounts are all part of <u>In-store</u>

promotions and activities.

Stores use discounts, special offers to attract more customers. This is a marketing strategy, even if customers do not need the products, they would surely just go for a visit or look around if they are getting any discounts or special offers. In the retailer's advertising toolbox, loyalty programs have substantiated themselves as a standout among st the best strategies for expanding income and inspiring customer loyalty.

4 0
3 years ago
To determine the consumer price index (CPI), _____. a. only the current market basket at current prices needs to be known. b. th
Maru [420]

Answer:

e. The values of the current market basket at current prices and the base-year market basket at base-year prices need to be known

Explanation:

The formula of Consumer Price Index (CPI) is: Current year price of basket consisting of many goods / Base year price of basket consisting of many goods.

The result obtained from the above formula is multiplied by 100 to get final answer in percentage form. So, Option E is the correct option.

7 0
3 years ago
BlackHawk anticipates paying a dividend of $4.25 next year and is expected to grow the dividend at a constant rate of 7% per yea
siniylev [52]

Answer:

$70.83

Explanation:

The Gordon Growth model (or the dividend discount model) provides a simple formula for calculating the intrinsic price of stocks:

price of stocks = dividend / (required rate of return - growth rate)

price of stocks = $4.25 / (13% - 7%) = $4.25 / 6% = $70.83

4 0
3 years ago
What budgeting tips would you help to stay on track financially
Delvig [45]
Someone famous stated this but i don’t know who.

it was something like
whatever i have in my bank account right now, i can only spend 10% of it on something

say i want to buy a house. i will only spend %10 of my total bank balance
4 0
2 years ago
When the output of the collective farms and private plots were compared?
-Dominant- [34]
<span>The private plots were more productive
In collective farms, the land and the operations are mostly owned by the states.
This situation created lack of competition, which demotivates the farm's operators to increase the quality of the farms.
This will lead to private plots gaining more incentives to create a better output from their farms.</span>
5 0
3 years ago
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