6. Future value of annuities Which of the following statements about annuities are true? Check all...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
6. Future value of annuities Which of the following statements about annuities are true? Check all that apply. An ordinary annuity of equal time earns less interest than an annuity due. When equal payments are made at the beginning of each period for a certain time period, they are treated as an annuity due. Annuities are structured to provide fixed payments for a fixed period of time. When equal payments are made at the beginning of each period for a certain time period, they are treated as ordinary annuities. Which of the following is an example of an annuity? O A job contract that pays an hourly wage based on the work done on a particular day O A job contract that pays a regular monthly salary for three years Katie had a high monthly food bill before she decided to cook at home every day in order to reduce her expenses. She starts to save $1,970 every year and plans to renovate her kitchen. She deposits the money in her savings account at the end of each year and earns 7% annual interest. Katie's savings are an example of an annuity. If Katie decides to renovate her kitchen, how much would she have in her savings account at the end of seven years? O $10,616.90 O $17,048.42 O $18,241.81 O $14,491.16 If Katie deposits the money at the beginning of every year and everything else remains the same, how much will she save by the end of seven years? $17,048.42 $18,241.81 $22,802.26 $11,360.08 6. Future value of annuities Which of the following statements about annuities are true? Check all that apply. An ordinary annuity of equal time earns less interest than an annuity due. When equal payments are made at the beginning of each period for a certain time period, they are treated as an annuity due. Annuities are structured to provide fixed payments for a fixed period of time. When equal payments are made at the beginning of each period for a certain time period, they are treated as ordinary annuities. Which of the following is an example of an annuity? O A job contract that pays an hourly wage based on the work done on a particular day O A job contract that pays a regular monthly salary for three years Katie had a high monthly food bill before she decided to cook at home every day in order to reduce her expenses. She starts to save $1,970 every year and plans to renovate her kitchen. She deposits the money in her savings account at the end of each year and earns 7% annual interest. Katie's savings are an example of an annuity. If Katie decides to renovate her kitchen, how much would she have in her savings account at the end of seven years? O $10,616.90 O $17,048.42 O $18,241.81 O $14,491.16 If Katie deposits the money at the beginning of every year and everything else remains the same, how much will she save by the end of seven years? $17,048.42 $18,241.81 $22,802.26 $11,360.08
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below 1 The f... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these finance questions
-
Please read the question properly and answer according to that. Please do not copy from other answers because those are wrong. I will upvote you if the answer is correct. 15 K 15 V 100 K Assume for...
-
Please answer the following questions related to the article provided and submit your paper to the assignment link. Please ensure that you list the article on your References page, and use in-text...
-
1 This question is about the Nature of Programming Languages. a) Explain the essential characteristics and features for each of the following categories of programming language. Provide sample code...
-
1. What might explain the candidates and Democratic Partys reversal of position on free trade? Which voting constituencies would be most likely to reject free trade? Why? 2. What leverage do the...
-
Grand Devices Corporation assembles handheld computers that have scaled-down capabilities of laptop computers. Each handheld computer takes 6 hours to assemble. Grand Devices uses a JIT production...
-
Which types of economic damages are related to digital crimes?
-
AV City stocks and sells a particular brand of laptop. It costs the firm $625 each time it places an order with the manufacturer for the laptops. The cost of carrying one laptop in inventory for a...
-
Let the widget industry demand curve be given by P= 200 - Q, where Q is the industry output. There are two firms, Firm 1 and Firm 2. Each has a marginal cost of $20. 1. Assume that these two firms...
-
One thousand kilomoles per hour of rich gas at 70F with 25% C1, 15% C2,25% C3, 20% nC4, and 15% nC5 by moles is to be absorbed by 500 kmol/h of nC10 at 90F in an absorber operating at 4 atm....
-
For the stage-discharge data in Table Q6, fit a regression equation for use in estimation of stage for a known value of discharge. i. Develop a gauge(stage)-discharge relationship for this stream at...
-
Discuss McLuhan's Laws of Media and assess whether it is a viable scientific theory of socio-technological evolution ?
-
Consider a three-security portfolio below: Security 1 2 3 Maturity (in years) 1 1 1 Par value Price Yield to maturity $100 $98 2.06% $100 $95 5.0% $100 $97 3.1% These securities pay $0 coupons at the...
-
What effect has legal changes that allow more consolidation of media under major corporations had? Do we need new laws limiting media ownership in the U.S.? Why? Use specific examples in your...
-
Pick one piece of the American Dream Malls' history and discuss which project knowledge domains are revealing ad explains why in an essay. Or pick one domain that was consistently done well or poorly?
-
2 small breifing of media law case studies of malaysia ?
-
Sheridan Fingers Corp is a manufacturer of gluten-free cinnamon rolls that are packaged and sold in quantities of six rolls. Sheridan has chosen to implement a process costing system to account for...
-
Charles owns an office building and land that are used in his trade or business. The office building and land were acquired in 1978 for $800,000 and $100,000, respectively. During the current year,...
-
Brian and Kim have a 12-year-old child, Stan. For 2012, Brian and Kim have taxable income of $52,000, and Stan has nonqualifying dividend income of $4,500 and investment expenses of $250. No election...
-
Sophie is a single taxpayer. For the first payroll period in October 2012, she is paid wages of $3,250 monthly. Sophie claims three allowances on her Form W-4. a. Use the percentage method to...
-
Joan is a self-employed attorney in New York City. Joan took a trip to San Diego, CA, primarily for business, to consult with a client and take a short vacation. On the trip, Joan incurred the...
-
Enter up a columnar purchases day book with columns for the various expenses for J. Still for the month from the following information on credit items. 2016 January f 1 Bought goods from H. Graham...
-
A Enter up a columnar purchases day book with columns for the various expenses for F. Graham for the month from the following information on credit items. 2016 June Bought goods from J. Syme 4 Bought...
-
Enter up the relevant accounts in the purchases and general ledgers from the columnar purchases day book you completed for Review Question 20.4A. Data From Review Question 20.4A 20.4A Enter up a...
Study smarter with the SolutionInn App