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Leno4ka [110]
3 years ago
6

Loan A has the same original principal, interest rate, and payment amount as Loan B. However, Loan A is structured as an annuity

due, while Loan B is structured as an ordinary annuity. The present value of Loan A will be
Business
1 answer:
7nadin3 [17]3 years ago
8 0

Answer:

Earlier than Loan B

Explanation:

In an annuity due, an occurring payment is made at the beginning of consecutive period.  (such as  rent  that is paid at the beginning of each months)

In ordinary annuity, an occurring payment is made at the the end of the consecutive period. (such as rent that is paid at the end of the year)

Since the payment of annuity due always received earlier by the creditor than ordinary annuity, the present value of loan A will always change Earlier than Loan B.

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If mr. silva decides to donate the balance of the investment account (at the end of year five) to youth soccer league associatio
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4 0
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Name and explain money notes<br>​
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Answer:

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