--%>
Assignment Help - homework help

Difference in annuities due or ordinary annuities

If you are doing PVA & FVA problems, what difference does it make if the annuities are "annuities due" or "ordinary annuities"?

In FVA or a PVA of annuity due problems, annuity payments earning interest one period sooner than in ordinary annuity problems. Thus, higher FVA and PVA values result along with an annuity due. The first payment occurs sooner in the case of future value of annuity due. In present value of annuity due problems, each of annuity payment take place one period sooner, so the payments are discounted less harshly.

 

 

   Related Questions in Finance Basics

  • Q : How do flotation costs influence the

    Normal 0 false false

  • Q : Correlate each to the New Economy

    Normal 0 false false

  • Q : Bg explain factors that responsible for

    explain factors that responsible for the recent surge in international market

    		•
  • Q : Define the term Judgments Judgments :

    Judgments: It is generally refers to decisions made by courts against the state. The payment of judgments is subject to a range of controls and procedures.

    		•
  • Q : Value $100 is received at the beginning

    $100 is received at the beginning of year 1, $200 is received at the beginning of year 2, and $300 is received at the beginning of year 3. If these cash flows are deposited at 12 percent, their combined future value at the end of year 3 is

    		•
  • Q : Fin 235 Personal Finance Homework Fin

    Fin 235 Personal Finance Homework Chapter 8: Problems: 1, 3, 5, 7 1.   Most home insurance policies cover jewelry for $1,000 and silverware for $2,500 unless items are covered with additional insurance. If a family

    		•
  • Q : Advantages-disadvantages of internal

    Describe advantages and disadvantages of the internal rate of return method? The internal rate of return method is discounted cash flow method and number expressed like a percentage. Typically these are seen as advantages. The main disadvantag

    		•
  • Q : Explain the term Continuous

    Continuous Appropriation: The constitutional or statutory expenses authorization that is renewed each year without additional legislative action. The amount obtainable might be particular, recurring sum each year; all or a specified part of the procee

    		•
  • Q : Healthcare Finance Issues Question 1 A.

    Question 1 A. What per visit price must be set for the service to break even? To earn an annual profit of $100,000? (10,000 * 5.00 - $500,000 - 50,000 = 0

    Q : Describe why measure projects risk as

    Describe why we measure a project's risk as the change in the CV.We measure a project's risk since the change in the coefficient of variation since this focuses on the change in the riskiness of the firm's existing portfolio.

    		•