What is the term for the compounding or discounting of a stream of even payments over a specific period of time?
a) Amoritzation
b) Depreciation
c) Annuity
Answer- Option c is correct I e. Annuity
Annuity means series of payments over a fixed period of time.
What is the term for the compounding or discounting of a stream of even payments over...
Which one of the following best defines an annuity? a) A stream of decreasing payments occurring at regular intervals for a fixed period of time b) A level stream of payments occurring at equal time intervals c) A series of equal payments occurring at random intervals over a fixed period of time d) A stream of increasing annual dividend payments over an infinite period of time e) A level stream of payments occurring at random intervals for an infinite period...
Definition/Explanation Discounting/Compounding . What is an annuity? What is the difference between an ordinary annuity & annuity due? .How does the FV and PV increase/decrease as the time and interest rates increase/decrease? TVM problems (lump sum problems only) that ask you to solve for the following: o Number of periods o Interest rate o Present Value o Future Value
do you call a stream of equal payments received or paid at equal intervals in time? A lump sum An annuity Discounting Future value
An annuity is a stream of _____ payments either at the ______ or the _______ of a period. This is like paying rent at the beginning of each month for 12 months or paying a mortgage payment at the end of each month for 12 months. An annuity is a stream of _____ payments either at the ______ or the _______ of a period.
23. An ordinary annuity is best defined as: A) increasing payments paid for a definitive period of time. B) increasing payments paid forever C) equal payments paid at the end of regular intervals over a stated time period. D) equal payments paid at the beginning of regular intervals for a limited time period. E) equal payments that occur at set intervals for an unlimited period of time 24. A perpetuity is defined as: A) a limited number of equal payments...
A series of equal periodic payments in which the first payment is made one compounding period after the date of the contract is O A. an annuity due OB. a deferred annuity O c. an ordinary annuity OD. a compound annuity
If you had to amortise a $120,000 loan over a 10-year period into a payment stream that looks like a uniform annuity flow taking the time value of money into account, then the value of the monthly payments at an APR of 9% on the loan must be how much? (round to the nearest whole dollar)
If you had to amortise a $120,000 loan over a 10-year period into a payment stream that looks like a uniform annuity flow taking the time value of money into account, then the value of the monthly payments at an APR of 9% on the loan must be how much? (round to the nearest whole dollar) PLS provide an explanation :)
Mathematical concepts of compounding and discounting streams of income. Demonstrate how the following formulae or factors are derived: Amount of $1, A = (1+i)^n where i is the interest rate pa and n is the compounding/ discounting period in years Amount of $1 pa = (A-1)/i Present value of $1, V = 1/(1+i)^n Present value of $1 pa = (1-V)/i What would be the formulae if the periodic incomes are receivable and compounded monthly instead of yearly? The above formulae...
Mathematical concepts of compounding and discounting streams of income. Demonstrate how the following formulae or factors are derived: Amount of $1, A = (1+i)^n where i is the interest rate pa and n is the compounding/ discounting period in years Amount of $1 pa = (A-1)/i Present value of $1, V = 1/(1+i)^n Present value of $1 pa = (1-V)/i What would be the formulae if the periodic incomes are receivable and compounded monthly instead of yearly? The above formulae...