1.An annuity due is a series of equal cash flows where a cash flow occurs at...

1.An annuity due is a series of equal cash flows where a cash flow occurs at the end of each period.

True or False

2.The effective annual rate (EAR) will equal the annual percentage rate (APR) if interest is compounded annually.

True or Flase

Solutions

Expert Solution

Sol:

1. An annuity due is a series of equal cash flows where a cash flow occurs at the end of each period. (TRUE)

2. The effective annual rate (EAR) will equal the annual percentage rate (APR) if interest is compounded annually. (TRUE)

jeff jeffy answered 2 years ago

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