Option C is the answer Ordinary annuity is a series in which equal periodic payments are made after the first payment. Comment if you face any issues |
A series of equal periodic payments in which the first payment is made one compounding period...
Question 12 A series of equal periodic payments that starts more than one period after the agreement is called: A) An annuity due B) An ordinary annuity C) A future annuity D) A deferred annuity
For a sum of money invested at 11.8% compounded quarterly for 10 years state the following values a) the number of compounding periods b) the periodic rate of interest (c) the compounding factor (1 + i)n (d) the numerical value of the compounding factor (a) The number of compounding periods is 4 (Type an integer or a decimal.) (b) The periodic rate of interest is %. (Round to six decimal places as needed.) A (C) The compounding factor is (1+...
Jenks Company financed the purchase of a machine by paying $37,000 a year for the next five years, with the first payment due one year from today. The purchase cost of the machine is considered to be the present value of those payments. What was the purchase cost of the machine to Jenks assuming a discount rate of 7%? (Use spreadsheet software or a financial calculator to calculate your answer. Do not round any intermediary calculations, and round your final...
Find the payment that should be used for the annuity due whose future value is given. Assume that the compounding period is the same as the payment period $17,000, quarterly payments for 8 years, interest rate 4.3% The payment should be _______ (Do not round until the final answer. Then round to the nearest cent as needed.)
1- In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. Find the amount of time needed for the sinking fund to reach the given accumulated amount. (Round your answer to two decimal places.) $275 monthly at 5.6% to accumulate $25,000. _________yr 2- Determine the amount due on the compound interest loan. (Round your answers to the nearest cent.) $18,000 at 3% for 15 years if...
What is an annuity? Select one: a. present worth of a series of equal payments. b. a single payment. c. a series of payments that changes by a constant amount from one period to the next. d. a series of equal payments over a sequence of equal periods. e. a series of payments that changes by the same proportion from one period to the next. Question 2 The present worth factor Select one: a. gives the future value equivalent to...
The debt is amortized by equal payments made at the end of each payment interval. Compute (a) the size of the periodic payments; (b) the outstanding principal at the time indicated; (c) the interest paid by the payment following the time indicated for finding the outstanding principal; and (d) the principal repaid by the same payment as in part c. Debt Principal Repayment Period Payment Interval Interest Rate Conversion Period Outstanding Principal After: $12,000.00 7 years 1 month 9% quarterly...
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...
In order to measure the purchase price of an investment in bonds, which of the following time value of money concepts is used? O A. the present value of an ordinary annuity O B. the future value of an ordinary annuity O C. the future value of $1 OD. all of these Which of the following is considered a permanent item when assessing earnings quality? O A. Again on discontinued operations OB. Aloss on the sale of a machine which...
Equal end-of-period semiannual payments of $500, increasing by $100 with each subsequent payment, are made to a fund paying 10 percent compounded continuously. What will the fund amount to after 7 years? What is the present worth equivalent of the total set of payments? What is the equal semiannual equivalent amount of the payments?