Sophia-Principle-Finance-Milestone (135)

Choose the letter of the correct answer and write it on the space provided _____ 1. A sequence of payments made at equal (fixed) intervals or periods of time. A. Annuity C. Ordinary Annuity B. Annuity due D. Simple Annuity ______2. The amount of each payment. A. Payment interval C. Annuity Payment B. Periodic Payment D. Time payment ______3. It is time between the purchase of an annuity and the start of the payments for the deferred annuity. A. Period of deferral C. Payment interval B. Annuity payment D. Period of payment ______4. A type of annuity in which the payments are made at the end of each payment interval. A. Annuity due C. General Annuity D. Simple Annuity D. Ordinary Annuity ______5. Compounding quarterly means the interest period is A. every year C. every 6 months B. every 4 months D. every 3 months ______6. In a monthly payment of P2,000 for 5 years that will start 7 months from now, what will be the period of deferral? A. 7 B. 5 C. 4 D. 6 ______7. A loan is given an…

Rank the following from highest present value to lowest present value. Assume all else equal. v An annuity with 10 payments v An annuity due with 15 payments v A perpetuity v An annuity with 15 payments

Please explain every step. Thank you

Use the table below to answer the following questions:                  Present Value of 1 Factor Present Value of an Annuity of 1 Factor   Period 1/2 Yr Full-Yr 1/2 Yr Full-Yr   1 0.9578 0.9174 0.9578 0.9174   2 0.9174 0.8417 1.8753 1.7591   3 0.8787 0.7722 2.7540 2.5313   4 0.8417 0.7084 3.5957 3.2397   5 0.8062 0.6499 4.4019 3.8897   6 0.7722 0.5963 5.1740 4.4859   Assumption: Required annual effective rate (EPR) of return is 9%.   If an investment pays you $324,000 at the end of 3 years, what is its present value? Group of answer choices $279,396 $291,703 $273,380 $250,193

Use the table below to answer the following questions:                  Present Value of 1 Factor Present Value of an Annuity of 1 Factor   Period 1/2 Yr Full-Yr 1/2 Yr Full-Yr   1 0.9578 0.9174 0.9578 0.9174   2 0.9174 0.8417 1.8753 1.7591   3 0.8787 0.7722 2.7540 2.5313   4 0.8417 0.7084 3.5957 3.2397   5 0.8062 0.6499 4.4019 3.8897   6 0.7722 0.5963 5.1740 4.4859   Assumption: Required annual effective rate (EPR) of return is 9%.   If an investment pays you $54,000 every  6 months for 3 years, what is its present value?   $279,396 $250,193 $273,380 $291,703

Use the table below to answer the following questions:                  Present Value of 1 Factor Present Value of an Annuity of 1 Factor   Period 1/2 Yr Full-Yr 1/2 Yr Full-Yr   1 0.9578 0.9174 0.9578 0.9174   2 0.9174 0.8417 1.8753 1.7591   3 0.8787 0.7722 2.7540 2.5313   4 0.8417 0.7084 3.5957 3.2397   5 0.8062 0.6499 4.4019 3.8897   6 0.7722 0.5963 5.1740 4.4859   Assumption: Required annual effective rate (EPR) of return is 9%.   If an investment pays you $54,000 every 6 months for 3 years, starting at the beginning of each 6 month period, what is its present value? Group of answer choices $279,396 $291,703 $250,193 $273,380

Which of the following is the formula for the future value of an annuity? Multiple choice question. FVA = C ((1+r)t–1r)(1+r)t–1r FVA = C (1−1(1+r)tr)1-1(1+r)tr FVA = C ((1–r)t+1r)

In order to compute the present value of an annuity, it is necessary to know the 1. discount rate. 2. number of discount periods and the amount of the periodic payments or receipts. ○ 1 O something in addition to 1 and 2 O both 1 and 2 ○ 2

A series of equal payments occurring at equal interval of time, known as. Ans: ____________ A type of annuity where the first payment is made at the end of the first period. Ans: ___________________ A type of annuity whose sum is infinite. Ans: _____________ A type of annuity where the first payment is made at the beginning of the first period. Ans: ______________ A type of annuity where the first payment is made later after the end of the first period. Ans: ___________________

Increasing the number of periods will increase all of the following except: Select one: A. The present value of an annuity B. The present value of $1 C. The future value of $1 D. The future value of an annuity

An annuity due is an annuity for which:   Question 10 options:   A)  the payments are made to repay a loan   B)  the payments are made at the beginning of each payment period   C)  the payments continue forever   D)  the payments are made at the end of each payment period   E)  the payment period is not the same as the conversion period

An [Select] is a sequence of equal period payments. If payments are made at the end of each time interval, the annuity is called an [Select]