Which of the following statements is/are correct? I. At 6% interest, the present value of: $400 for the first year, $600 for the second year, and $800 for the third year is $1,603.00. II. The future value of the following mixed cash flow stream (if it is from an annuity due at 6% interest):$400 for the first year, $600 for the second year, and $800 for the third year is $1,999 (rounded). Only statement I is correct.
Neither statement I nor II is correct.
Only statement II is correct.
Both statements I and II are correct.
Which of the following statements is/are correct? I. At 6% interest, the present value of: $400...
Which of the following statements is/are correct? I. At 6% interest, the present value of: $400 for the first year, $600 for the second year, and $800 for the third year is $1,603.00. II. The future value of the following mixed cash flow stream (if it is from an annuity due at 6% interest):$400 for the first year, $600 for the second year, and $800 for the third year is $1,999 (rounded).
What is the future value of an immediate annuity cash flow stream if the current interest rate is 12%? Year Cashflow 1 600 2 800 3 1000 4 1200
Which of the following statements about an insurable interest in life insurance is (are) true? I. It is required of any person named as beneficiary. II. It must exist at the time the life insurance is purchased. OI only Oll only both I and II neither I nor 11 Which of the following statements about an insurable interest in life insurance is (are) true? 1. It is required of any person named as beneficiary. II. It must exist at the...
1. Which of the following statements concerning insurance underwriting is (are) correct? I. Underwriting is the selection and pricing of insurance applications that are offered to an insurer. II. Underwriting attempts to avoid adverse selection by individuals who purchase insurance. A I only B. II only C. Both I and II D. Neither I nor II 2. Which of the following statements concerning modified endowment contracts (MECs) is (are) correct? I. Any policy that is paid up prior to age...
1.Future Value: Ordinary Annuity versus Annuity Due What is the future value of a 3%, 5-year ordinary annuity that pays $250 each year? Round your answer to the nearest cent. $ If this were an annuity due, what would its future value be? Round your answer to the nearest cent. $ 2. Present and Future Value of an Uneven Cash Flow Stream An investment will pay $100 at the end of each of the next 3 years, $400 at the...
21) Which of the following statements is (are) true with respect to annuities? 1. The fundamental purpose of annuities is to replace lost income in case of premature death. II. Annuity payments will be higher if the annuity is funded with life insurance cash value rather than outside funds. A) I only B) II only C) both I and II D) neither I nor II een for a fixed annuity when he was 50 years old. At
Which of the following statements is/are correct? 1. The principal but not the interest to be paid this year on a 30-year mortgage is properly classified on the Statement of Financial Position as a current liability. 2. A CD with a maturity of 9-months is classified as an investment asset on the Statement of Financial Position. Select one: a. a. 1 only. b. b. 2 only. c. c. Both 1 and 2. d. d. Neither 1 nor 2. Question 12...
Future Value of Uneven Cash Flow 22. You expect to receive $300, $400, $500, $300, $400 and $500 at the end of each year over the next 6 years. If an annual interest rate is 4 percent, what is the future value of this uneven cash flow stream? a. $2,636 23. You expect to receive $300, $400, $500, $300, $400 and $500 at the end of each year over the next 6 years. If an annual interest rate is 2...
18) Which of the following statements is (are) false concerning settlement options? 1. A straight life annuity provides the highest amount of periodic income of all the life income options. II. The interest only option is the most often used settlement option. A) I only B) II only C) both I and II D) neither I nor II
Present and Future Value of an Uneven Cash Flow Stream An investment will pay $100 at the end of each of the next 3 years, $400 at the end of Year 4, $600 at the end of Year 5, and $800 at the end of Year 6. If other investments of equal risk earn 6% annually. What is its present value? Round your answer to the nearest cent. What is its future value? Round your answer to the nearest cent....