The difference between an ordinary annuity and an annuity due is the number of a

Question

The difference between an ordinary annuity and an annuity due is the number of annuity payments. frequency of the annuity payments timing of the annuity payments interest rate applied to the annuity payments amount of each annuity payment Which one of the following is generally valued as a perpetuity? short-term bond long-term bond non-dividend paying common stock preferred stock common stock paying increasing dividends When comparing loans of equal amounts and equal time pods. you should select the loan that t lowest annual percentage rate 0 b nominal rate. 0 c quoted rate effective annual rate stated rate Which one of the following statements correct concerning annual percentage rates (APRs)? The APR is equal to one plus the monthly interest rate raised to the 12th power for an accord charges interest on a monthly basis When comparing investments, you should compare their APRs rather than their EARs The APR is greater than the EAR for a loan with monthly payments The APR is equal to the monthly interest rate multiplied by 12 for a credo card that compute monthly basis The APR is the best measure of the actual rate you are pay rig on a loan John borrows S900 today in exchange tor one payment of S1.200 as years from now This is an e amortized loan. compounded loan 0 c quoted role loan interest-only loan pure account loan.

Explanation / Answer

21)

Ordinary annuity assumes payments are received or paid at period ending. Annuity due assumes payments received or paid occurs at period beginning.

Hence, correct option is (C)

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.