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- What is a deferred ordinary annuity? How does it differ from one that is not deferred? Draw a time line of each.What is the primary difference between an ordinary annuity and an annuity due? Group of answer choices ordinary annuity only relates to future values the timing of the periodic payment annuity due only relates to future values the interest rateWhich of the following cannot be calculated? Select one: a. the interest rate on perpetuity given the present value and payment amount b. the present value of an annuity due c. the present value of a perpetuity d. the future value of a perpetuity
- The process that determines the present value of a single payment or stream of payments to be received is an annuity. True or false?If you're calculating the present value of future payments, you're using an annuity. Is this statement accurate or incorrect?May I ask for an explanation of the question for a better understanding. Thank you! Which of the following statements is NOT TRUE? a. In an annuity due, payments occur at the beginning of the period. b. A perpetuity will never mature at any point in future. c. The present value of a perpetuity can be calculated. d. In an ordinary annuity, payments occur at the beginning of the period.
- If the question doesn’t state when payments are made- is the default ordinary annuity?Which of the following statements regarding annuities is FALSE? (1) A difference between an annuity and a perpetuity is that an annuity ends after some fixed number of payments. (II) When using the present value formula of perpetuity (C/r) to calculate the value at date 0, the first payment occurs at date 0. (III) When using the present value formula of growing perpetuity (C/(r-g)) to calculate the value at date 0, the first payment occurs at date 1 and doesn't include growth. (IV) In the growing perpetuity formula (C/(r-g)), g cannot be negative. (V) In the growing perpetuity formula (C/(r-g)), g can be greater than r. O A. II, III, IV, V O B. II O C. IV, V O D. II, IV, V O E. II, IVIn comparing an ordinary annuity and an annuity due, which of the following is true? a. The future value of an annuity due is always less than the future value of an otherwise identical ordinary annuity, since one less payment is received with an annuity due. b. The future value of an annuity due is always greater than the future value of an otherwise identical ordinary annuity. c. The future value of an ordinary annuity is always greater than the future value of an otherwise identical annuity due.
- Using an annuity, you may calculate the present value of a single payment or a series of payments you will receive. Is this statement correct or incorrect?What is the formula in finding the present value of a deferred annuity.Which of the following is not true regarding an annuity due? Select the correct response: It is a series of equal cash flows. Payments are made at the start of each period. It is also known as deferred annuity Cash flows occurs for a specific time.