« previous next »

Author Question: You own a contract that promises an annuity cash flow of 100 end-of-the-year cash flows for each of ... (Read 101 times)

bobbie

  • Hero Member
  • *****
  • Posts: 592
on: Jul 11, 2018
You own a contract that promises an annuity cash flow of 100 end-of-the-year cash flows for each of the next three years (note: the first cash flow is exactly one year from today).
 
  At an interest rate of 10, what is the future value of this contract exactly three years from today?
  A) 248.69
  B) 273.55
  C) 331.00
  D) 364.10

Question 2

Money market deposit accounts and money market mutual funds are identical financial products.
 
  Indicate whether the statement is true or false


allisonblackmore

  • Sr. Member
  • ****
  • Posts: 330
Reply #1 on: Jul 11, 2018
Answer to Question 1

C
Explanation: C) Via Calculator: N = 3, I = 10, PMT = 100, Solve for FV =331.00.

Answer to Question 2

FALSE


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

The carbon cycle. Numbers are storage as 1015 g or fluxes as 1015 g per year (data from Schlesinger The carbon cycle. Numbers are storage as 1015 g or fluxes as 1015 g per year (data from Schlesinger
Rate of Residential Change, Past Year, in the United States Rate of Residential Change, Past Year, in the United States
Infant: 4 weeks to 1 year. Infant: 4 weeks to 1 year.
Co-current flow in a concentric tube heat exchanger Co-current flow in a concentric tube heat exchanger
When the engine is cold, the coolant flows through the bypass. When the engine is cold, the coolant flows through the bypass.
Nitin earns $48,000 per year. Determine his gross earnings for each pay period if he is paid ... Nitin earns $48,000 per year. Determine his gross earnings for each pay period if he is paid ...
Video: Transcription - Introns and exons

For a complete list of videos, visit our video library