Which of the following comparison statements is true? Multiple Choice An annuity has equal payments, a...

Which of the following comparison statements is true? Multiple Choice

An annuity has equal payments, a perpetuity does not.

Both an annuity and a perpetuity have payments with equal values.

An annuity covers a longer period of time than a perpetuity.

An annuity has a constant rate of return, a perpetuity does not.

An annuity has a different rate than a perpetuity.

Solutions

Expert Solution

Ans- Option 2. Both an annuity and a perpetuity have payments with equal values.

- Annuity is equal periodic payment made for a particuar period of time while A perpetuity is Constant equal Payments indefinately ,i.e., forever. A perpetuity is annual payments forever

They both have equal paymnets

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Which of the following statements about utilization of a resource is TRUE? Multiple Choice It is...

Which of the following statements about utilization of a resource is TRUE? Multiple Choice It is at its maximum when the flow rate exceeds its capacity It is at its maximum when the flow rate is equal to its capacity. It is at its minimum when the flow rate exceeds its capacity. It is at its minimum when the flow rate is equal to its capacity

Which of the following statements about recourse is (are) true? Multiple Choice The buyer of the...

Which of the following statements about recourse is (are) true? Multiple Choice The buyer of the mortgage can require the mortgage seller to repay the mortgage if the homeowner defaults. Most mortgage sales are with recourse. The homeowner can direct who the mortgage service provider is. The seller of the mortgage is responsible for the interest payments only. The mortgage seller must make all the monthly payments.

Which of the following statements is TRUE? Multiple Choice The goal of a corporate financial manager...

Which of the following statements is TRUE? Multiple Choice The goal of a corporate financial manager is to maximize the wealth of the firm’s lenders. A distinct feature of sole proprietorship is the separation of ownership and management. The goal of a corporate financial manager is to maximize the firm’s profit. Agency problem is the conflict of interest between a firm’s principal and its agent.

Which of the following statements is/are true? Multiple Choice A. A portfolio comprised soley of U.S....

Which of the following statements is/are true? Multiple Choice A. A portfolio comprised soley of U.S. Treasury bills will have a beta of 1. B. A portfolio that has just as much risk as the overall market will have a beta of 0. Both A and B are true Neither A or B are true. Under which of the following circumstances will the value of a stock go up? Multiple Choice Increase in the market rate of return Decrease in...

1. Which of the following statements regarding GAAR is true? Multiple Choice The purpose of GAAR...

1. Which of the following statements regarding GAAR is true? Multiple Choice The purpose of GAAR is to catch tax evaders. When an avoidance transaction takes place, the anti-avoidance rule is automatically applied in all circumstances. Canada Revenue Agency states that "A transaction will not be an avoidance transaction if the taxpayer establishes that it is undertaken primarily for bona fide business, investment or family purposes." Individuals who organize their affairs in order to pay as little tax as possible...

Which one of the following statements is true in regards to municipal bond insurance? Multiple Choice...

Which one of the following statements is true in regards to municipal bond insurance? Multiple Choice The insurance premium is paid by the bondholders. Insured bonds tend to sell at lower prices than uninsured bonds. To date, bond insurers have not had to pay any payments for bond defaults. The insurance can be cancelled with 30 days notice to the bond issuer. The financial strength of the bond issuer can affect the bond's credit rating.

Which of the following statements is TRUE about product costs? Multiple Choice A. Product costs are...

Which of the following statements is TRUE about product costs? Multiple Choice A. Product costs are reported only on the balance sheet. B. Product costs are reported only on the income statement. C. Product costs are reported on the balance sheet before goods are sold, and on the income statement after goods are sold. D. Product costs are reported on the income statement before goods are sold, and on the balance sheet after goods are sold.

Which of the following statements is not true regarding custodial funds? Multiple Choice a) Custodial funds...

Which of the following statements is not true regarding custodial funds? Multiple Choice a) Custodial funds are reported in the fiduciary funds Statement of Fiduciary Net Position. b) Custodial funds use modified accrual accounting. c) Custodial funds may report assets, liabilities, and fund net position. d) None of the choices; all are true.

Which of the following statements is true? Multiple Choice The global bond market is about half...

Which of the following statements is true? Multiple Choice The global bond market is about half the size of the global stock market. Bonds are a common form of equity financing. Bonds are generally traded “under-the-table.” The U.S. Treasury is the largest issuer of bonds.

Multiple choice: Which one of the following statements about our Sun is true? (a) The Sun...

Multiple choice: Which one of the following statements about our Sun is true? (a) The Sun consists primarily of hydrogen and helium. (b) The Sun is a very active star, blasting waves of energy, solar flares, and winds continuously and uniformly with time. (c) The apparent motion of sunspots on the Sun is caused mainly by Earth’s orbit. (d) Being an uncharged (i.e., neutral) star, the Sun does not have a significant magnetic field. (e) Sunspots were first discovered recently,...

Subjects