Question

Payments of equal amounts that are equally spaced over time are a form of an annuity

Payments of equal amounts that are equally spaced over time are a form of an annuity
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The statement is correct.

Annuity is fix payment per period. Over a period of time.

If the payment is made at the beginning of every period, it is called annuity due, and if the payment is made at the end of the period then it is called normal annuity.

--------------------------------------------------------------------------------------------------------------------------

Feel free to comment if you need further assistance J

Pls rate this answer if you found it useful.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Find the value (today, time zero) of an annuity that makes equal annual payments of $1,000...
Find the value (today, time zero) of an annuity that makes equal annual payments of $1,000 each year with its first payment at the end of year 7 and its last payment at the end of year 15. The interest rate is 8.3%.
The figure shows five equally spaced holes on an 100mm diameter circle. Calculate the co-ordinates relative...
The figure shows five equally spaced holes on an 100mm diameter circle. Calculate the co-ordinates relative to the x and y axis in polar form
You have invented a “septatonic” scale with 7 equally spaced notes per octave (in the same...
You have invented a “septatonic” scale with 7 equally spaced notes per octave (in the same sense as the equal-temperament chromatic scale, which would be “dodecatonic” with 12 equally spaced steps). What would be the frequency ratio between adjacent notes? (in other words, what is the ratio between adjacent notes in your ‘septatonic’ scale?) 0.1428 1.1041 1.0905 1.0000 1.1225
It is a type of annuity where payments are made indefinitely or forever. -ordinary annuity -annuity...
It is a type of annuity where payments are made indefinitely or forever. -ordinary annuity -annuity due -perpetuity -deferred annuity It is the sum of the first cost and the present worth of annual maintenance and operational costs, costs of repair and the renewal costs. -annual cost -capitalized cost -marginal cost -future worth cost A method of computing depreciation which is not applicable if salvage value is zero. -straight line -sinking fund -SYD -declining balance It pertains to series of...
What is the difference of the future amounts of the annuity due and ordinary annuity for...
What is the difference of the future amounts of the annuity due and ordinary annuity for regular quarterly payments of 14000 at 14% compounded quarterly. Please Solve As soon as Solve quickly I get you UPVOTE directly Thank's Abdul-Rahim Taysir
Consider an annuity with equal monthly payments of $300 for 5 years, with the first payment...
Consider an annuity with equal monthly payments of $300 for 5 years, with the first payment starting 7 months from now. If the effective annual rate for the first two years (starting today) is 5% and the nominal rate in subsequent years is 6% per annum compounded semi-annually, calculate the future value of this annuity immediately after the last monthly payment.
Annuity A has a present value of $100,000 and makes 20 payments. Annuity B has a...
Annuity A has a present value of $100,000 and makes 20 payments. Annuity B has a present value of $100,000 and makes 18 payments. All else equal, which one has the higher payment?
A company must make payments of $10 annually in the form of a 10- year annuity-...
A company must make payments of $10 annually in the form of a 10- year annuity- immediate. It plans to buy two zero coupon bonds to fund these payments. The first bond matures in 2 years and the second bond matures in 9 years, and both are purchased to yield 10% effective. What face amount of each bond should the company buy in order to be immunized from small changes in the interest rate (redington immunization)?
A company must make payments of $10 annually in the form of a 10- year annuity-...
A company must make payments of $10 annually in the form of a 10- year annuity- immediate. It plans to buy two zero coupon bonds to fund these payments. The first bond matures in 2 years and the second bond matures in 9 years, and both are purchased to yield 10% effective. What face amount of each bond should the company buy in order to be immunized from small changes in the interest rate (redington immunization)?
Determine the present Value annuity payments(the same amount each year) of 500$ over a period of...
Determine the present Value annuity payments(the same amount each year) of 500$ over a period of 8 years which will earn 6% during the period. a.$5000 b.$2450 c.$2550 d.$3105
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT