MBF-4E-11-01-Deferred_Annuities

6 [Question text] An ordinary annuity is best defined as __________________. Select one: A. increasing payments paid forever B. equal payments paid at the beginning of regular intervals for a limited time period C. equal payments paid at the end of regular intervals over a stated time period D. increasing payments paid for a definitive period of time

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 above

An annuity due is an annuity for which:   Question 10 options:   A)  the payments are made to repay a loan   B)  the payments are made at the beginning of each payment period   C)  the payments continue forever   D)  the payments are made at the end of each payment period   E)  the payment period is not the same as the conversion period

Question 15 Annuities where the payments occur at the beginning of cach time period are called ahereas refer to annuity streams with payments occurring at the end ofexhine period O ordinary for regular) annuities annuities due O annuities due, ordinary lor regulari annutles OLte anouties straight anuities ordinany annuities carly annuities straight annuities, late annuities

Question 20 Annuity Due is a type of annuity wherein the payment is made at the beginning of each period. A True False

Problem 8: Present Value of an Annuity Refer to each case in the table below to answer what are required in this problem. Find the present value of the annuity, assuming that it is  (1) An ordinary annuity.  (2) An annuity due. Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity—ordinary or annuity due—is preferable? Explain why

Question 10 The formula for the Present Value of Deferred Annuity is P. 1-(1+ )" (1+. A True False

Annuities where the payments occur at the beginning of each time period arecalled refer to annuity streams with payments occurring at the end of each ine period. where O ordinary lor regular) annuities annuities due annuities due, ordinary (or regularl annuities O ute annuitie straight annuties straight annuities late aonuities

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: ___________________

→ Question 1 A usually involves some constant periodic payment which pays for both interest and principle over some specified period of time. Question 2 A involves some constant periodic payment which pays for interest over some period of time and a lump sum final payment at the end of the term .

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]

Annuity due is an annuity whose payment is due at the END of each period. TRUE OR FALSE?

General Term used to defined a series of equal payments occurring at equal interval of time.     Inflation     Discount     Interest     Annuity

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 forever

(3-4.) The following terms of payment for an annuity are as follows: Periodic payment = 20,000 Payment interval = 1 month Interest rate = 18% compounded monthly Terms = 15 years

Problem 5 Given the following spot rates and forward rates (in percents) for the effective years: Rate/Year Spot Forward 4. 5 8. 9 4. 10 7. 7. 8 6. 3 2 4. 8. 8 4 Find the present value factor of an annuity immediate under both schemes. (These figures may not match because the rates aren't designed to match.)

1.     Which statement is FALSE?   A. Future value annuity is an example of annuity. B. A perpetuity is an annuity that has maturity period. C. An annuity is a series of equal payment made for a specified number of years. D. Ordinary annuity is an annuity in which the cash flows occur at the end of each period.

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 neriod

Question 2 The APR is approximately double the add-on rate on an installment loan. True False

Help Save & The difference between an ordinary annulty and an annulty due Is: Multiple Choice an ordinary annuity represents a present value and an annuity due represents a future value. an ordinary annuity represents a future value and an annuity due represents a present value. an ordinary annuity assumes the cash flows occur at the beginning of the period and an annuity due assumes the cash flows occur at the end of the period. an ordinary annuity assumes the cash flows occur at the end of the period and an annuity due assumes the cash flows occur at the beginning of the period.

Question 9 Calculate the nominal rate for each of the following general ordinary annuities given the present or future value of the annuity Note. Please make sure your final answer(s) are in percantage form and are accurate to 2 decimal places. For example 34 56% Periodic payments Payment interval Interest Compounding Present or Future frequency Term Rate value Every quarter year 12 years, 6 months 0.00% Every quarter year 12 years, 3 months 0.00% Semi-annually FV = $70,943.40 $800.00 Semi-annually PV = $30,946.62 $900.00 SAVE AND CLOSE

QUESTION 5 At an annual effective interest rate of i, >0, the present value of a perpetuity paying 100 at the end of each 2-year period, with the first payment at the end of year 2, is 400. At the same annual effective rate of i, the present value of a perpetuity paying 11 at the end of each 6-month period, with first payment at the end of 6 months, is X. Calculate X O 178.1 O 191.7 O 193.7 O 200.5 O 201.2

march eacg Letter to the correct  number answer  to the left: 1.       Interest 2.       Monetary asset 3.       Compound interest 4.       Simple interest 5.       Annuity 6.       Present value of a single amount 7.       Annuity due 8.       Future value of a single amount 9.       Ordinary annuity 10.   Effective rate or yield 11.   Nonmonetary asset 12.   Time value of money 13.   Monetary liability     1.       ______ 2.       ______ 3.       ______ 4.       ______ 5.       ______ 6.       ______ 7.       ______ 8.       ______ 9.       ______ 10.   ______ 11.   ______ 12.   ______ 13.   ______ a.       First cash flow occurs one period after agreement begins b.       The rate at which money will actually grow during a year c.       First cash flow occurs on the first day of the agreement d.       The amount of money that a dollar will grow to e.       Amount of money paid/received in excess of amount borrowed/lent f.        Obligation to pay a sum of cash, the amount of which…

An even stream of payments over equal time periods where the interest rate is constant is referred to as a(n): a) Post-annuity. Ob) Annuity. c) Pre-annuity. d) Accumulated Annuity due.