Explain why the value of an annuity is equal to the value of a
perpetuity minus...
Explain why the value of an annuity is equal to the value of a
perpetuity minus the value of a deferred
perpetuity. Using example numbers are timelines is
encouraged.
b)Everything else equal, which annuity has the greater future
value: an annuity or an annuity due?
Why?
c) What is the difference between an ordinary annuity and an
annuity due
d) All else equal, which annuity has the greater present value:
an ordinary annuity or an annuity due? Why?
Explain why we can use the present value of a no-growth
perpetuity to quickly estimate the value of a relatively
long-lived, no-growth financial asset. Make sure you provide a
mathematical example.
What is the present value of a perpetuity consisting of equal
payments of $66 every 3 months, where the first payment occurs 3
months from now, and the interest rate is 12% p.a.?
Select one:
a. $59
b. $2200
c. $550
d. $64
An
annuity in perpetuity with effective annual interest rate i > 0
has present value $90. The annuity pays $30 at the end of each 5
year period, with the first payment at the end of year 10. Find i.
please dont solve using excel
What are the benefits and features of:
(A) Ordinary annuity
(B) Annuity Due
(C) Perpetuity
The preferred shareholders earn a $2.50 annual dividend (never
changed). What is the fair value of the preferred stock if the
market premium is 0.15?
1. The present value of an ordinary annuity:
a.is equal to the amount of money invested in the future
b. represents a lump sum payment
c. determines the amount of money that needs to be invested
today
d.can be determined only using the tables
2. Which of the following statements is correct?
a. present value may only be found using a table
b.present value concerns both the present, and future values
c.present value concerns primarily the future value
d.present value...