# True when the present value of an annuity is

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When the present value of an annuity is calculated as of two or more periods before the payment of the first cashflow,the annuity is
An ordinary annuity is a series of equal periodic payments and an annuity due is a series of unequal periodic payments.
You decide to deposit\$5,000at a local bank for three years at a8%rate of interest compounded quarterly. The future value of your investment is most nearly equal to
The factor for the present value of an ordinary annuity for10%and eight periods is less than
Which of the following equations is consistent with the relationship between the future value(FV)and the present value(PV)given a discount rate(R)and the number(N)of compoundingperiods?
You decide to deposit\$2,000at a local bank for two years at a7%rate of interest compounded annually. What is the future value of yourinvestment?
Annie Laerz wants to invest\$10,000on January1,2014, so that she may withdraw 10 annual payments of equal amounts beginning January1,2029. If the fund earns10%annual interest over itslife,what will be the amount of each of thewithdrawals?(Round intermediate calculations and your final answer to the nearestdollar.)
An ordinary annuity is a series of equal periodic payments made at the beginning of each period.
A specific future value of an ordinary annuity factor for a given number of periods and a specific discount rate is equal to the cumulative sum of the future value of a single sum factors over the number of periods for that discount rate.
A present value is always less than the corresponding future value.
A deferred annuity is an annuity for which payments are delayed until the end of each period.
A deferred annuity is an annuity in which interest is not compounded until a future period.
Which of the following is false?
A specific present value of an ordinary annuity factor for a given number of periods and a specific discount rate is equal to the cumulative sum of the present value of a single sum factors over the number of periods for that discount rate.
For any specific number ofperiods,the present value factor decreases as the discount rate increases.
For any discountrate, the future value of an ordinary annuity factor for n periods is equal to the future value of an annuity due factor for n− 1 periods plus 1.
Baxter desires to purchase an annuity on January1,2014, that yields him five annual cash flows of\$10,000each, with the first cash flow to be received on January1,2017. The interest rate is10%compounded annually. The cost(presentvalue) of the annuity on January1,2014, is
For any discount
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