Question
An annuity due means that the payments occur: a. At the end of the period b. At the beginning of the period c. In the
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An annuity due means that the payments occur:
a. At the end of the period
b. At the beginning of the period
c. In the middle of the period
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An annuity due is worth more than an annuity because:
a. Each payment is compounded for an extra year
b. Each payment is compounded for an extra two years
c. Each payment is discounted for an extra year
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If the formula for the future value of an amount of money is FV= PV(1+I)n , then the formula for the PV of an amount of money is:
a.
PV = FV/(1+I)n
b. PV = FV + I
c. PV = FV/In
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In the formula for the future value of an amount of money FV= PV(1+I)n , N is equal to:
a. Nominal interest rate
b. Negative 1
c. Number of periods
An annuity due means that the payments occur:
| a. | At the end of the period | |
| b. | At the beginning of the period | |
| c. | In the middle of the period |
An annuity due is worth more than an annuity because:
| a. | Each payment is compounded for an extra year | |
| b. | Each payment is compounded for an extra two years | |
| c. | Each payment is discounted for an extra year |
If the formula for the future value of an amount of money is FV= PV(1+I)n , then the formula for the PV of an amount of money is:
| a. |
PV = FV/(1+I)n | |
| b. | PV = FV + I | |
| c. | PV = FV/In |
In the formula for the future value of an amount of money FV= PV(1+I)n , N is equal to:
| a. | Nominal interest rate | |
| b. | Negative 1 | |
| c. | Number of periods |
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