![rhaquan66766](/avatars/29303.jpg)
rhaquan66766
08.11.2019 •
Business
You are comparing three investments, all of which pay $100 a month and have an interest rate of 8 percent. one is ordinary annuity, one is an annuity due, and the third investment is a perpetuity. which one of the following statements is correct given these three investment options? a) to be the perpetuity, the payments must occur on the first day of each monthly periodb) the ordinary annuity would be more valuable than the annuity due if both had a life of 10 yearsc) the present value of the perpetuity has to be higher than the present value of either the ordinary annuity or the annuity dued) the future value of all three investments must be equale) the present value of all three investments must be equal
Solved
Show answers
More tips
- F Family and Home Parquet or laminate, which is better?...
- L Leisure and Entertainment How to Properly Wind Fishing Line onto a Reel?...
- L Leisure and Entertainment How to Make a Paper Boat in Simple Steps...
- T Travel and tourism Maldives Adventures: What is the Best Season to Visit the Luxurious Beaches?...
- H Health and Medicine Kinesiology: What is it and How Does it Work?...
- O Other How to Choose the Best Answer to Your Question on The Grand Question ?...
- L Leisure and Entertainment History of International Women s Day: When Did the Celebration of March 8th Begin?...
- S Style and Beauty Intimate Haircut: The Reasons, Popularity, and Risks...
- A Art and Culture When Will Eurovision 2011 Take Place?...
- S Style and Beauty How to Choose the Perfect Hair Straightener?...
Answers on questions: Business
- B Business Select all that apply. careers in the law, public safety, corrections and security career cluster include: 1) gardener 2) teacher 3) judge 4) jailer...
- B Business James works full time as an entry-level web designer since earning his certi He rents an apartment by himself. He has a credit card, which he used to purchase furniture, with a balance...
- B Business Since you are selling friendship bracelets online, the Internet service provider (ISP) is your agent. True False...
- B Business In terms of investments, real rate refers to the amount you actually have to pay the brokerage. B) ability of an investor to pay their debt in full. amount of stock a company actually...
- B Business In two or more complete sentences, discuss the advantages and disadvantages of investing in a CD versus investing in a basic savings account....
- B Business If sam invested $3000and he earned $300 over 6 months, the principal is...
- M Mathematics Jethro invested $7,500 in CD s at a 2% interest rate for 9 months. What is the interest?and the sales price?...
- M Mathematics Sam finds out the 27 kids in our school are left handed. If those 27 kids make up 9% of the school student population, what is the total population of her school....
- C Chemistry Please help #1, #2, #3 I do not understand how to do them...
- H Health Which symptom is an indicator of shock? O heart palpitations O shallow breathing O clammy skin O bluish skin...
Ответ:
c. The present value of the perpetuity has to be higher than the present value of either the ordinary annuity or the annuity due
Explanation:
Considering the following statements:
the ordinary perpetuity, the payments must occur on the first day of each monthly period. Hence this statement is incorrect.The ordinary annuity would be more valuable than the annuity due if both had a life of 10 years. Incorrect.In case of perpetuity the times is not limited, hence would get the higher return.Ответ:
I dont see any options or anything... what is the question? hold on... wait never mind!