Assuming equal time Intervals between tne payments and a constant rate of return. Year 1 Year 2 Year 3 Year 4 Year 5 Year %241,000 $1,000 $1,000 $1,000 $1,000 $1,00e A) B) $ c) $ e s 200 $ 5e0 $ 500 $ 500 S see s 300 $ 100 $ 400 $ 500 $ 600 Multiple Choice B Any of the answers can represent an ennuity

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Assuming equal ume Intervals between the payments and a constant rate of return, which of the following cash flow patterns represents an annulty?
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
A) $1,000 $1,000 $1,000 $ 1,000 $1,000 $ 1,000
B) $
c) $
500 $
500 $
500 $
500 $
100 $
200 $
300 $
400 $
500 $
600
Multiple Choice
A
B
Any of the answers can represent an annuity.
Transcribed Image Text:Assuming equal ume Intervals between the payments and a constant rate of return, which of the following cash flow patterns represents an annulty? Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 A) $1,000 $1,000 $1,000 $ 1,000 $1,000 $ 1,000 B) $ c) $ 500 $ 500 $ 500 $ 500 $ 100 $ 200 $ 300 $ 400 $ 500 $ 600 Multiple Choice A B Any of the answers can represent an annuity.
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