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9966 [12]
3 years ago
5

Regarding the present value of an annuity, the present value of an annuity due will always be worth less compared to the present

value of an ordinary annuity.
a) true
b) false
Business
1 answer:
KATRIN_1 [288]3 years ago
5 0

Answer: false

Explanation:

Annuity due is an annuity whereby the payment is normally due at the beginning of every period which can be annually, semi annually, monthly, or quarterly. Examples of payments with annuity due include rents and, leases.

In ordinary annuity, the main difference is that the payments have to be made at the end of every period.

It should be noted that the present value of an annuity due is typically worth more when it is compared to the present value of ordinary annuity.

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clients can owe businesses payment for services, and businesses have financial obligations they need to pay

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3 years ago
The sales budget for Modesto Corp. shows that 21,900 units of Product A and 23,900 units of Product B are going to be sold for p
rewona [7]

Answer:

22,290 units

Explanation:

Product A sales (S) = 21,900 units

Product A selling price = $11.90

Product A beggining inventory (I)= 3,900

Product A ending inventory (E) = 3,900 x 1.10 = 4,290

Budgeted purchases of product A must account for all of the projected sales and the desired ending inventory, assuming that the company already has a beginning inventory at hand. Budgeted Purchases of product A are given by:

B = S+E-I\\B= 21,900+4,290-3,900\\B= 22,290\ units

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3 years ago
Why did the natural environment receive so much attention under new deal programs, and with what result?
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4 years ago
What are some examples of semantic noise words
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6 0
3 years ago
Problem 11-6 Risk Premiums (LO1)Assume these are the stock market and Treasury bill returns for a 5-year period: Year Stock Mark
Sedaia [141]

Answer:

Year _______Risk Premium (%)

2011 _______ 0.95

2012_______ 16.01

2013_______ 32.99

2014_______ 12.66

2015_______ 0.46

Explanation:

The Risk premium is the premium paid to an investor for investing in a risky stock/security/asset over the risk-free rate in the market.

A Risk-free rate is a rate that is offered by a security having minimum or no risk at all e.g. Rate on Government securities are considered as the risk-free rate because these securities are backed by the government.

T bills or Treasury bills are also considered as risk-free investments.

Use following formula to calculate the Risk premium

Ris premium = Stock Market Return - T-Bill Return

Use above formula Calculate the risk premium as below

Year _ Stock Market Return (%) __T-Bill Return (%)__ Risk Premium (%)

2011 _______ 0.98 _______________0.03 _________ 0.95

2012_______ 16.06_______________0.05 _________ 16.01

2013_______ 33.06_______________0.07 _________ 32.99

2014_______ 12.71 _______________ 0.05  _________ 12.66

2015_______ 0.67 _______________ 0.21 __________  0.46

6 0
3 years ago
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