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…

Question 1 Saved An annuity with periodic payments made at the end of each payment period is called: A) ordinary Oi general Cannuity due O simple Onone of the above

The formula 1/(1 + r)t is used to calculate   Multiple Choice   The present value annuity factor.   The present value interest factor.   The future value interest factor.   The present value of $1 occurring t periods from now.

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

Multiple Choice Question   Which of the following is the formula for the present value of a growing annuity? (C is the payment to occur at the end of the first period, r is the interest rate, g is the rate of growth per period expressed as a percentage, and t is the number of periods for the annuity.) Multiple choice question. PV = C(r−g)C(r−g) (1−((1−g)(1−r))t)1−(1-g)(1-r)t PV = C(r−g)C(r−g) (1−((1+g)(1+r))t)1−(1+g)(1+r)t PV = C(r−g)C(r−g) (1−((1−g)(1+r))t)1−(1-g)(1+r)t PV = C(r−g)C(r−g) (1−((1+g)(1−r))t)

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

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In the present value of an annuity due table, the factors ________. Group of answer choices decrease as the interest rates increase, given a set number of periods decrease as the periods increase, given a set interest rate increase as the periods decrease, given a set interest rate increase as the interest rates increase, given a set number of periods

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Task: Assume that at time 0 a sum L is lent for a series of n yearly payments. The rth payment, of amount x, is due at the end of the rth year. Let the effective annual interest rate for the rth year be i,. Give an identity which expresses L in terms of the x, and i,. Answer: The identity is [ Select ] [ Select ] L = x_1 (1+i_1)^(-1) + x_2 (1+i_1)^(-1) (1+i_2)^(-2) + .. + x_n (1+i_1)^(-1) (1+i_2)^(-2) ... (1+i_n)^(-n) L = x_1 (1+i_1) + x_2 (1+i_1) (1+i_2) + ... + x_n (1+i_1) (1+i_2) ... (1+i_n) L = x_1 (1+i_1)^(-1) + x_2 (1+i_1)^(-1) (1+i_2)^(-1) + .. + x_n (1+i_1)^(-1) (1+i_2)^(-1) ... (1+i_n)^(-1) Question 3 L = x_1 (1+i_1) + x_2 (1+i_1) (1+i_2)^2 + ... + x_n (1+i_1) (1+i_2)^2 ... (1+i_n)^n