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dangina [55]
3 years ago
5

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

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?
Multiple Choice
a.These annuities have equal present values but unequal future values.
b.These two annuities have both equal present and equal future values.
c.Annuity B is an annuity due.
d.Annuity A has a smaller future value than annuity B.
e.Annuity B has a smaller present value than annuity A.
Business
1 answer:
bixtya [17]3 years ago
8 0

Answer:

E) Annuity B has a smaller present value than annuity A.

Explanation:

The main premise in finances is that the value of money increases in time, e.g. one dollar today is worth more than one dollar tomorrow.

In this case, annuity A is an annuity due (payment is made at the beginning of each period). An annuity due that has the same payments and the same rates, will always have a higher present value than an ordinary annuity.

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1 of 5) What does it mean to "Diversify" your portfolio?
eduard

Answer:

D. A and B

Explanation:

5 0
3 years ago
A mortgage broker advertises a 30-year fixed-rate loan at a 2.00% rate. After the borrower arrives at the office and begins an a
Contact [7]

Answer:

Truth in Lending Act (TILA)

Explanation:

Mortgage brokering can be defined as a process which typically involves a mortgage broker acting as an intermediary between a financial institution (mortgage bank) offering loans and an individual that seeks to collect a loan.

This ultimately implies that, a mortgage broker acts as an intermediary (middleman) by connecting a creditor (lender) to those seeking to get a loan (borrower).

The Truth in Lending Act (TILA) also known as Consumer Credit Protection Act (CCPA) is a federal law of the United States of America that was enacted by the 89th US Congress and signed into law by President Lyndon B. Johnson on the 29th of May, 1968.

The main purpose of this federal law (Act) is to protect the consumer while using credit by mandating businesses to provide a full disclosure of the terms and conditions with respect to the credit.

According to the Truth in Lending Act (TILA), businesses are required to explain all collection fees, finance charges, late charges and interest charges up front before the time of service or application process commence.

In this scenario, a mortgage broker advertised a 30-year fixed-rate loan with an interest rate of 2.00%.

However, when the borrower arrived at the office of the mortgage broker and begins an application, the broker then went ahead to explain that the 2.00% interest rate is no longer available because his office was only able to do a limited number of them.

Thus, this broker is in violation of Truth in Lending Act (TILA).

6 0
3 years ago
What type of occupation do you prefer to do any why​
Fed [463]

Answer:

a hands on occupation

Explanation:

I dont like sitting around

7 0
2 years ago
g You deposit $1,900 in your savings account that pays an annual interest rate of 3.25%. If the inflation rate is 1.09%, by how
gayaneshka [121]

Answer:

Real purchasing power increase= 2.16%

Explanation:

Giving the following information:

You deposit $1,900 in your savings account that pays an annual interest rate of 3.25%. The inflation rate is 1.09%.

In this example, we have two different and opposite effects. The interest rate increases your purchasing power. If the inflation rate is 0, the purchasing power will increase (in one year) 3.25%.

The inflation rate decreases the purchasing power of nominal income.

Real purchasing power increase= annual interest rate - inflation rate

Real purchasing power increase= 3.25 - 1.09= 2.16%

6 0
3 years ago
A seller (or provider) of goods or services to a business organization, usually a manufacturer or wholesaler, is known as a:
Hatshy [7]
He is known as a VENDOR. A vendor is a part of the supply chain, he makes goods and services available to companies and consumers. Companies typically provide a vendor with purchase order which clearly states the products that the company wants to buy, the number of units needed, the price, the delivery date and other specifics.
5 0
3 years ago
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