Constitute an annuity, but $100 in Year 1, $200 in Year 2,

Constitute an annuity

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Reference no: EM131819959

1. Explain whether the following statement is true or false: $100 a year for 10 years is an annuity: but $100 in Year 1, $200 in Year 2, and $400 in Years 3 through 10 does not constitute an annuity. However, the second series contains an annuity.

2. If a firm's earnings per share grew from $1 to $2 over a 10-year period, the total growth would be 100%, but the annual growth rate would be less than 10%. True or false? Explain.

Reference no: EM131819959

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