Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. b)everything else equal, which annuity has the gre

b)Everything else equal, which annuity has the greater futurevalue: an     annuity or an annuity...

80.2K

Verified Solution

Question

Accounting

b)Everything else equal, which annuity has the greater futurevalue: an     annuity or an annuity due?Why?

c) What is the difference between an ordinary annuity and anannuity due

d) All else equal, which annuity has the greater present value:an ordinary annuity or an annuity due? Why?

Answer & Explanation Solved by verified expert
3.6 Ratings (295 Votes)
b Future Value of the annuity due is greater than the Future Value of the ordinary annuity Analysis of the above statement in point b With an annuitydue the payments are made at the beginning rather than the end of the period The difference between the future value of an annuity due AD and future value of an ordinary annuity OA is based on the timing of the payments ADs pay starting immediately while OAs pay at the end of the period Concept may be explained with the below mentioned example For example lets say you are going to get an annuity that    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

In: Accountingb)Everything else equal, which annuity has the greater futurevalue: an     annuity or an annuity due?...b)Everything else equal, which annuity has the greater futurevalue: an     annuity or an annuity due?Why?c) What is the difference between an ordinary annuity and anannuity dued) All else equal, which annuity has the greater present value:an ordinary annuity or an annuity due? Why?

Other questions asked by students

Q

Use elimination to solve the system of equations. Identify the system as consistent or inconsistent....

Calculus
Q

Use Newton's method to find all solutions of the equation correct to eight decimal places. Start...

Advance Math
Q

What are the difference and similarities between a speech of explanation and a speech of description?...

Psychology
Q

If you as a pathogen needed to stop the host from walling you off behind...

Biology
Q

If the collision of a ball of mass m is inelastic then the relation between...

Physics
Q

A group of students was asked what music genres they enjoyed. The responses are displayed...

Statistics
Q

4 The period of the function shown is approximately M A 8 B6 C4 D2...

Calculus
Q

Each of the following statements is an attempt to show that a given series is...

Calculus
Q

calculate the net profit margin, expreses as a porcent. (Round your answer to 1 decimal...

Accounting
Q

Diamond Company manufactures two models of cassette recorders: VCH and MTV. Based on the following...

Accounting
Q

Required information The following information applies to the questions displayed below) Thrillville has $40.7 million...

Accounting
Q

Indicate whether each of the following variances is favorable (F) or unfavorable (U). The first...

Accounting