Other things being equal, why is the present value of an annuity due larger than the present

Question:

Other things being equal, why is the present value of an annuity due larger than the present value of an ordinary annuity?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Business Mathematics In Canada

ISBN: 978-0070009899

7th edition

Authors: Ernest Jerome

See More Books

Question Posted: Jan 02, 2024 01:49 AM

See More Questions

Other things being equal, why is the future value of an annuity due larger than the future value of an ordinary annuity?
For each problem, show your work steps. A correct answer with no work shown gets half credit (which means you fail the assignment). An incorrect answer with no work receives 0 credit. With time value...
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
A steam turbine receives a flow of 3 kg/s water at 1200 kPa, 350 C and velocity of 15 m/s. The steam exits the turbine at 100 kPa, 150 C and very low velocity. Find the specific work and the power...
An MA(2) process is described by the difference equation x(n) = (n) + 0.81(n 2) where (n) is a white noise process with variance 2u. (a) Determine the parameters of the AR(2), AR(4), and AR(8)...
Based upon the T accounts in Exercise 2-4, prepare the nine journal entries from which the postings were made. Journal entry explanations may be omitted.
Suppose there is a risk-free asset and n risky assets. Consider an investor with quadratic utility E[ w] 1 2 E[ w] 2 1 2 var(w) and no labor income. Show that the optimal portfolio for the investor...
Assume that on January 2, 2012, Barrett of Nebraska purchased fixtures for $8,200 cash, expecting the fixtures to remain in service for five years. Barrett has depreciated the fixtures on a...
Need help entering these journal entries. May 3: Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $4,500. Description Post. Ref. Debit...
For the present value of an annuity due, where is the focal date located relative to the first payment?
Refer to Example 1. Approximate the revenue if 2,000 units are produced and if 5,000 units are produced. Data from Example 1 A manufacturing company has defined the revenue function for one of its...
2. (a) Find all nonzero vectors orthogonal to (1, -1,0) that lie in the plane z = x. (b) Find all nonzero vectors orthogonal to the vector (3,2, -5) whose components sum to 4. (c) Find an equation of...
You have been employed as a systems analyst in the information systems organization of a medium-sized consumer goods manufacturer for three years. You are quite surprised when your manager offers you...
For your initial post, address the following: First, introduce yourself to the class by sharing a bit about yourself, such as your preferred name or pronouns, where you are from, what your major is,...
Question 8 : Consider the technology of Solar Panels. Which stage of the technology life cycle S curve is this technology in. Justify why ? Question 9 : The standard Product Life Cycle has 5 stages...
At Benihana restaurant a man wrenched his neck while ducking a piece of flying shrimp, requiring treatment by several doctors. By that summer, doctors determined surgery was necessary to treat...
You have just come into an inheritance of $25,000 from a distant relative, and you want to invest it for the long term. Provide an investment portfolio that includes five different stocks. Report the...
Peptide hormones (such as insulin) must bind to receptors on the outside surfaces of their target cells before their signal is transmitted to the inside of the cell. In contrast, the receptors for...
The swap spread is the difference between the swap rate and the equivalent-maturity Treasury bond yield. Explain why a widening swap spread may be a signal of deteriorating economic conditions. Plot...
Municipal Bonds why is it that municipal bonds are not taxed at the federal level, but are taxable across state lines? Why are U.S. Treasury bonds not taxable at the state level? (You may need to...
Bond Market what are the implications for bond investors of the lack of transparency in the bond market?
Rating Agencies A controversy erupted regarding bond-rating agencies when some agencies began to provide unsolicited bond ratings. Why do you think this is controversial?
Question 3 (24 marks) Wonderful Technology Company Limited sells computers and accessories. Data of the store's operations are as follow: Sales are budgeted at $400,000 for December 2019, $420,000...
Kratz Manufacturing Company uses an activity-based costing system. It has the following manufacturing activity areas, related cost drivers and cost allocation rates: Activity Cost Driver Cost...
You are a Partner with Fix-It Consultants and have been engaged in an advisory capacity with a software company, called MoveFast. The company is seeing a sharp decline in revenue, with the primary...

Other things being equal, why is the present value of an annuity due larger than the present

Question:

Step by Step Answer:

The present value of an annuity due is higher than the present value of an ordinary annuity due to t...View the full answer

Business Mathematics In Canada

Students also viewed these Mathematics questions