question archive Which of the following statements is CORRECStatement 2
Which of the following statements is CORRECStatement 2
Subject:FinancePrice: Bought3
Which of the following statements is CORRECStatement 2. Statement 3.A.B.C.DE.
T? Statement 1. The difference between the PV of an annuity due and the PV of an ordinary annuity is that each of the payments of the annuity due is discounted by one more year (period). The difference between an ordinary annuity and an annuity due is that each of the payments of the annuity due earns interest for one additional year (period). An annuity is a series of equal payments made at fixed equal-length intervals for a specified number of periods
Statement 3 only.
All of the statements are correct.
Statement 2 only.
. None of the statements is correct.
Statement 1 only.
Which of the following statements is CORRECT?
A) The future value of an annuity table is most useful in the short-cut calculation of the future value of uneven cash flows.
B) The present value of an annuity table is most useful in the short-cut calculation of the present value of uneven cash flows.
C) The formula or equation for the calculation of the future value can be used also in regular annuity and subject to a fluctuating rate of return.
D) The formula or equation for the calculation of the present value can be used only in even cash flows that are paid or received at regular time intervals and subject to a constant discount rate.
Which investment will you choose from the following investment opportunities:
A) All the choices will provide the same future value.
B) A one-year investment that pays 12%, compounding quarterly.
C) A one-year investment that pays 12%, compounding monthly.
D) A one-year investment that pays 12%, compounding annually
