User Account

All Pages

Calculate the future value of the annuity

Assignment Help Finance Basics
Reference no: EM131167444

Consider the following cases.

Case

Amount of annuity

Interest rate

Period (years)

Your answers here

Ordinary

Due

A

$12,000

7%

3

B

22,500

10

5

  • a) Calculate the future value of the annuity that it is
    • i)An ordinary annuity (annuity immediate)
    • ii)An annuity due
  • b) Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity, ordinary or annuity due, is preferred? Explain why.

Reference no: EM131167444

Questions Cloud

Market research department recommends manufacture-marketing : A company's market research department recommends the manufacture and marketing of a new headphone set for MP3 players. after suitable test marketing, the research department presents the following price demand equation: p=10-0.0011x where x is the n..
What is the tough membrane on outside of bone : What is the tough membrane on outside of bone; protects long bones ; provides nutrient-rich blood for bones cells and is a source of bone - developing cells during growth or after a fracture
What basis of accounting is used : What basis of accounting is used? Why is this basis most appropriate? How does it support responsible practices within the company?
How does healthy eating prevents diseases : Describe the conditions under which the body uses protein to provide energy. How does healthy eating prevents diseases? How can healthy eating be cost-effective for the heathcare system?
Calculate the future value of the annuity : a) Calculate the future value of the annuity that it is i)An ordinary annuity (annuity immediate) ii)An annuity dueb) Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity, ordinary or  annuity due, is preferr..
Find given confidence interval : Based on your answer to part a, are you convinced that the gaskets from shift 2 are, on average, wider than those from shift 1? Why or why not?
Adopt a critical approach to the discussion : You are required to adopt a critical approach to the discussion of the five (5) topics below. These discussions, resembling mini-essays, must be supported with relevant literature
Rates of returns on similar-risk investments : What is the least you will sell your claim for if you can earn the following rates of returns on similar-risk investments during the 10-year period?
What are the gains from trade : The following data represents the production possibilities of two people in solving math and economic problems. If they devote their total effort and time to math, A can solve 10 math problems and B can solve 10 math problems. Now assume that they sp..

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd