« 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 91 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?

Carbamazepine can interfere with the results of home pregnancy tests. If you are taking carbamazepine, do not try to test for pregnancy at home.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

Chinese workers on a railway in the far West. “Without them,” Leland Stanford, president of the Cent Chinese workers on a railway in the far West. “Without them,” Leland Stanford, president of the Cent
Diagram of Cross Flow Air Dryer Diagram of Cross Flow Air Dryer
Flow Aloft and Cyclone Formation Flow Aloft and Cyclone Formation
Mishu wants to invest an inheritance of $20,000 for one year. His credit union offers 8.85% for ... Mishu wants to invest an inheritance of $20,000 for one year. His credit union offers 8.85% for ...
No payments were made on a $2,598 loan during its three-year term. What was the annually ... No payments were made on a $2,598 loan during its three-year term. What was the annually ...
Video: Virtual Tour of the Heart

For a complete list of videos, visit our video library