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-Dominant- [34]
3 years ago
12

1. Explain the difference between an ordinary annuity and an annuity due. Begin by explaining what an annuity is.

Business
1 answer:
Evgesh-ka [11]3 years ago
6 0

Explanation:

1. An annuity is a number of equivalent payments made. For instance, the annuities include daily savings account deposits, monthly home loan payments, monthly insurance and pension payments. Annuity can be defined by the payment dates frequency.

Difference between an ordinary annuity and an annuity due:

In each period certain annuities shall pay the same amount, while varying annuities that differ in amounts. At the end of each time, payments in the standard annuity take place. In comparison, payments for an annuity due are made at the start of the contract.

2. The number of y-axis and discount rate on the x-axis is usually present in an annuity table. Place them on the table for your annuity and then place the cell in which they meet. Multiply the cell number by the amount of money each time is earned.

3. The annuity table contains the amount of contributions you expect to collect at a given interest rate plus a list of equivalent payments. You come to the current value of the payments when you subtract this element by one of the payments. As a quick guide the preceding annuity table includes only figures for discrete intervals and interest rates, which may be not quite the same as a real world scenario.

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3 years ago
Managerial accounting information for a company
Bad White [126]

Answer:

Correct answer is b. relates to subunits ot the entity and may be very detailed.

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3 years ago
A high marginal propensity to expend will cause the multiplier to be smaller.
lidiya [134]

Answer:

False

Explanation:

6 0
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7. Problems and Applications Q7 Your cousin Vinnie owns a painting company with fixed costs of $200 and the following schedule f
In-s [12.5K]

Answer:

4 houses per month.

Explanation:

Note: See the attached file for the calculation.

Efficient scale of production is can be described as the number of units of production where average total cost (ATC) of production is lowest.

From the attached file, the ATC of $70 is the lowest at 4 houses per month and 4 houses per month is therefore the efficient scale.

Download xlsx
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