If your investment pays the same amount at the end of each year for a period of six years, the cash flow stream is called
A) a perpetuity.
B) an ordinary annuity.
C) an annuity due.
D) none of the above.
Answer: B
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FIN202 Chapter 6
- Which one of the following statements is NOT true?
- Which one of the following statements is NOT true?
- Which one of the following statements is NOT true?
- The true cost of lending is the
- The true cost of borrowing is the
- Which one of the following statements is TRUE about the effective annual rate (EAR)?
- Your investment in a small business venture will produce cash flows that increase by 15 percent every year for the next 25 years. This cash flow stream is called
- A firm receives a cash flow from an investment that will increase by 10 percent annually for an infinite number of years. This cash flow stream is called
- The annuity transformation method is used to transform
- Which one of the following statements is true about amortization?
- Which one of the following statements is NOT true about amortization?
- Which ONE of the following statements is true about amortization?
- Cash flows associated with annuities are considered to be
- If your investment pays the same amount at the end of each year forever, the cash flow stream is called
- If your investment pays the same amount at the beginning of each year for a period of 10 years, the cash flow stream is called
- The future value of multiple cash flows is
- The present value of multiple cash flows is
- In computing the present and future value of multiple cash flows,
- In computing the present and future value of multiple cash flows,
- Calculating the present and future values of multiple cash flows is relevant
- Which one of the following steps is NOT involved in solving present value problems?
- To solve present value problems with multiple cash flows involves which of the following steps?
- Which one of the following steps is NOT involved in solving future value problems?
- To solve future value problems with multiple cash flows involves which of the following steps?
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