A) An ordinary annuity is worth one of the following statements and to rinary annuity is w h wethan for 10 years at 7 percent interest, compounded mully. D) A perpetuity comprised of 5100 monthly payment is worth S100 monthly payments provided the discount rates are equal C) Most loans are a form of a perpetuity. The present value of a perpetuity cannot be computed to the future value E) Perpetuities are finite but annuities are not y 20) Steve just com U steve just computed the present value of a $10.000 bonus he will receive next year interest rate he used in his computation is referred to as the A) current yield B) effective rate. C) compound rate. D) simple rate. E) discount rate. 21 You are comparing two annuities that offer regular payments of $2,500 for five years and pay.75 percent interest per month. You will purchase one of these today with a single Tump sum payment. Annuity A will pay you monthly, starting today, while annuity B will pay monthly, starting one month from today. Which one of the following statements is correct concerning these two annuities? A) These annuities have equal present values but unequal future values. B) These two annuities have both equal present and equal future values. C) Annuity B is an annuity due. D) Annuity A has a smaller future value than annuity Bo o t s E) Annuity B has a smaller present value than annuity A. 22) Your credit card charges you .85 percent interest per month. This rate when multiplied by 12 is called the rate. a d obne A) effective annual and olo do B) annual percentage C) periodic interest D) compound interest in E) episodic interest