question archive Match the key concept with their respective term
Match the key concept with their respective term
Subject:BusinessPrice: Bought3
Match the key concept with their respective term.
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PMT occurs at the beginning of the time interval |
General Annuity |
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a perpetual annuity |
Ordinary Annuity |
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PMT occurs at the same time as compounding |
Annuity Due |
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PMT occurs at a different time as compounding |
Perpetuity |
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PMT occurs at the end of the time interval |
Simple Annuity |
2.Calculate the fair market value (FMV) three years from today of a payment stream of equivalent payments of $300 at the end of each month at an interest rate of 2% compounded monthly.
FMV$=
3. A loan of $30,000 will be paid off by making equal sized payments of $450 at the end of each quarter. If the loan earns interest at a rate of 2.5% compounded quarterly, determine how many years it will take to pay off the loan.
n= ____________ equal sized payments
t= _____________ years
