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A: Future value is the future worth of cash flows that have occurred in the past or present.
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A: An annuity is a series of uniform cash flows occurring at equal interval over a period of time.
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A: Present Value of annuity = P*{1-{1/[(1+r)^n]}/r} Where, P= Annuity r = annual interest rate n = no.…
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- Annuities where the payments occur at the end of each time period are called whereas refer to annuity streams with payments occurring at the beginning of each time neriodIn annuity payments, the amount of interest which is included in each of the equal periodical payments is: A.increasing. B.decreasing. C.equal. D.not determinable.Fill in each blank so that the resulting statement is true. A/An . . is a sequence of equal payments made at equal time periods. Value of an annuity Annuity Principal Mortage
- An [Select] is a sequence of equal period payments. If payments are made at the end of each time interval, the annuity is called an [Select]Question 1 Saved An annuity with periodic payments made at the end of each payment period is called: A) ordinary Oi general Cannuity due O simple Onone of the aboveGeneral Term used to defined a series of equal payments occurring at equal interval of time. Inflation Discount Interest Annuity
- An ordinary annuity is best defined by which one of the following? a. Increasing payments paid for a definitive period of time. b. Equal payments paid at the end of regular intervals over a stated time period. c. Equal payments paid at the beginning of regular intervals for a limited time period. d. Equal payments that occur at set intervals for an unlimited period of time.A series of equal payments occurring at equal interval of time, known as. Ans: ____________ A type of annuity where the first payment is made at the end of the first period. Ans: ___________________ A type of annuity whose sum is infinite. Ans: _____________ A type of annuity where the first payment is made at the beginning of the first period. Ans: ______________ A type of annuity where the first payment is made later after the end of the first period. Ans: ___________________An annuity in which the first cash flow occurs at the beginning of the period is called a/an: Oordinary perpetuity. growth annuity. Oordinary annuity. annuity due.
- An annuity due is one in which _____. a. payments or receipts occur at the beginning of each period b. payments or receipts occur at the end of each period c. cash flows occur continuously d. payments or receipts occur foreverBriefly describe the replacement chain (common life) approach, anddifferentiate it from the equivalent annual annuity (EAA) approach.Annuity due is an annuity whose payment is due at the END of each period. TRUE OR FALSE?