Multiple Choice
Which is greater,the present value of a $1,000 five-year ordinary annuity discounted at 10%,or the present value of a $1,000 five-year annuity due discounted at 10%?
A) The ordinary annuity is worth more with a present value of $3,790.79.
B) The annuity due is worth more with a present value of $4,169.87.
C) The ordinary annuity is worth more with a present value of $4,169.87.
D) The annuity due is worth more with a present value of $4,586.85.
Correct Answer:
Verified
Correct Answer:
Verified
Q116: A never-ending stream of equal periodic,end-of-the-period cash
Q117: The first interest payment on a 5-year,8%,$100,000,fully-amortized
Q118: After winning the lottery,you state that you
Q119: Your family recently won the $10,000,000 lottery
Q120: If you borrow $5,000 at an annual
Q121: Present values and interest rates are inversely
Q122: The formula for the Present Value
Q124: If you borrow $5,000 at an annual
Q125: Given a positive interest rate and a
Q126: You have the opportunity to purchase mineral