Question

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.

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Abdul-Rahim Taysir

Answer #1

Ordinary annuity is one in which the payment is made at the end of the time period. And annuity due is one in which payment occurs at the beginning of the time period.

Interest rate = 14% compounded quarterly.

Calculating the future value of investment (Ordinary annuity).

Now,calculating the FW of annuity due

The difference between the two method is

Difference = 2,428,234.65 -
2,346,120.43 = $ **82,114.22**

How much it is easy or difficult for a manager to increase the
price by 1%?
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the difference between two different loan plans is 101,525.598.
the first plan is infinite annual end-period equal payments, while
the second plan is the same end-period but payable in 24 years.
what is the amount of the equal payments if it is the same in both
plans and interest is computed at 10% compounded annually
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a man wishes to save for his retirement pension plan which is 36
years from now. he planned to receive 100000 at the end of each
year for the nest 15 years starting from the first year of his
retirement. if the insurance company offers an investment of
11.495% interest rate compounded quarterly, what will be hi s
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a man wishes to save for his retirement pension plan which is 36
years from now. he planned to receive 100000 at the end of each
year for the nest 15 years starting from the first year of his
retirement. if the insurance company offers an investment of
11.495% interest rate compounded quarterly, what will be hi s
quarterly payments.
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Abdul-Rahim Taysir

During the year, ABC Corporation's Treasury Stock account
increased $46,000 due to a cash purchase, cash dividends of $42,000
were paid and the company reported net income of $200,000. On the
statement of cash flows (indirect method), Net cash used by
financing activities is:
Select one:
a. ($88,000).
b. ($112,000).
c. ($154,000).
d. ($158,000).
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Abdul-Rahim Taysir

During the year, ABC Corporation's Treasury Stock account
increased $46,000 due to a cash purchase, cash dividends of $42,000
were paid and the company reported net income of $200,000. On the
statement of cash flows (indirect method), Net cash used by
financing activities is:
Select one:
a. ($88,000).
b. ($112,000).
c. ($154,000).
d. ($158,000).
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Abdul-Rahim Taysir

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States,what are the major laws and regulations affecting human
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Abdul-Rahim Taysir

OMAR Company. reported net income of $53,000; depreciation
expenses of $11,000; a gain on a land sale of $3,000; and a
decrease in Accounts Receivable of $3,500. Under the indirect
method, net Cash Flows from operations is:
Select one:
a. $70,500.
b. $67,500.
c. $57,500.
d. $64,500.
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ALL OF THE BELOW ARE TRUE ABOUT INTERNAL RATE OF RETURN
EXCEPT
Select one:
a. ACCEPT THE PROJECT IF IRR IS LESS THAN THE DISCOUNT RATE
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c. ACCEPT THE PROJECT IF IRR IS HIGHER THAN THE DISCOUNT RATE
d. IRR IS A WAY TO EVALUATE THE ACCEPTANCE OF A PROJECT
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