Question

In: Finance

which is the statement is true 1.the annuity factor is always less than 1 2.the annuity...

which is the statement is true

1.the annuity factor is always less than 1

2.the annuity factor can be greater than one and smaller than one

3.the annuity factor is always one higher Num

4.the annuity can be negative or positive

Solutions

Expert Solution

the annuity factor can be greater than one and smaller than one

Formula for annuity factor =(( (1+Rate)^years)-1) / Rate

Table of annuity factor:


Related Solutions

Which of the following is always true: Diluted weighted shares is always less than or equal...
Which of the following is always true: Diluted weighted shares is always less than or equal to basic weighted average shares Diluted weighted shares is always greater than or equal to basic weighted average shares Shares outstanding on the period end date is the value used to calculate Basic EPS Shares outstanding on the period end date is the value used to calculate Diluted EPS
prove that 2/pi is less than or equal to (sinx)/x which is less than or equal...
prove that 2/pi is less than or equal to (sinx)/x which is less than or equal to 1. for x is in (0,pi/2]
The PVAF (present value annuity factor) is: A) it is always at time zero B) {[(1+(r/m)mt...
The PVAF (present value annuity factor) is: A) it is always at time zero B) {[(1+(r/m)mt – 1]/(r/m)} C) (1 + r/m)n=m*t D) 1 / (1 + r/m)n=m*t E) {[1 -1/(1+r/m)mt]/(r/m)} If the US T-Bill rate is 1.7%, the US expected inflation rate is 0.6%, the real rate of interest for Brazil is 2.2%, the default risk premium for Amazon is 0.9%, the maturity premium for Amazon debt is 1.2%, and the liquidity premium is 0.4%, then what is the...
Which statement is not true of molecular orbitals? A)The number of molecular orbitals formed is always...
Which statement is not true of molecular orbitals? A)The number of molecular orbitals formed is always equal to the number of atomic orbitals combined. B)A molecular orbital can accommodate up to two electrons. C)When electrons are added to orbitals of the same energy, the most stable arrangement is predicted by Hund's rule. D)Low-energy molecular orbitals fill before high-energy molecular orbitals fill. E)Antibonding molecular orbitals are higher in energy than all of the bonding molecular orbital
Is the following statement always true? “If an irreducible Markov chain has period 2, then for...
Is the following statement always true? “If an irreducible Markov chain has period 2, then for every state i∈S we have P2ii>0.” (Prove if “yes”, provide a counterexample if “no”)
Explain why marginal revenue is always less than average revenue(price) when demand is less than perfectly...
Explain why marginal revenue is always less than average revenue(price) when demand is less than perfectly elastic.
Within a firm, debt is always less expensive than equity. Why isn’t the WACC always the...
Within a firm, debt is always less expensive than equity. Why isn’t the WACC always the appropriate interest rate to use when determining the value of a project?
In no than less than 200 words, explain how an annuity differs from life insurance and...
In no than less than 200 words, explain how an annuity differs from life insurance and describe the major characteristics of a fixed annuity.
Which statement is true for all sexually reproducing plants and animals? The process of mitosis always...
Which statement is true for all sexually reproducing plants and animals? The process of mitosis always produces diploid cells. The process of meiosis produces haploid cells. The process of mitosis produces gametes. The process of meiosis produces gametes. The process of meiosis produces diploid cells.
Which of the following statements about annuity due and ordinary annuity is true? FV of annuity...
Which of the following statements about annuity due and ordinary annuity is true? FV of annuity due = (FV of ordinary annuity) / (1+i) FV of ordinary annuity = (FV of annuity due) * (1+i) PV of ordinary annuity = (PV of annuity due) * (1+i) PV of annuity due = (PV of ordinary annuity) * (1+i) In 1815, The British Government issued a consol. If we assume the consol promised to pay $25 per year in perpetuity. What would...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT