Which among these options for Mr. D is the best for him to pay the least? A. higher rate B. pay in cash C. shorter period of payment D. increase time
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Which among these options for Mr. D is the best for him to pay the least?
A. higher rate
B. pay in cash
C. shorter period of payment
D. increase time
Step by step
Solved in 2 steps
- Investment A is an annuity and Investment B is an annuity due. All else equal, which one will have the lower present value? Select one: a. A b. A=B c. BWhich of the following is not an advantage of the average rate of return method? a.includes the amount of income earned over the entire life of the proposal b.takes into consideration the time value of money c.emphasizes accounting income d.easy to use1. Modes of extinguishing obligations when creditor abandons his right to collect. (PLEASE EXPLAIN YOUR ANSWER) A. Condonation B. Forfeiture C. Debt D. Damages 2. Fall after the increase reaches a certain variable amount, this is called: (PLEASE EXPLAIN YOUR ANSWER) A. Process factor B. Law of return C. Inflation D. Supply & demand 3. It is always true that the effective rate is greater than the nominal rate when m ≥ 2. (PLEASE EXPLAIN YOUR ANSWER) A. True B. False 4. (A/F, i%, N) = (A/P, i%, N) + i (PLEASE EXPLAIN YOUR ANSWER) A. True B. False
- The discounted payback method considers the time value of money as well as the cash flows after the payback.Group of answer choices A.false B. trueTo account for a down payment, adjust the _____ of the loan by subtracting it from the loan amount. O present value (pv) future value (fv) rate O typeA life insurance policy is a financial asset, with the premiums paid representing the investment’scost.a. How would you calculate the expected return on a 1-year life insurance policy?b. Suppose the owner of a life insurance policy has no other financial assets—the person’sonly other asset is “human capital,” or earnings capacity. What is the correlation coefficientbetween the return on the insurance policy and the return on the human capital?c. Life insurance companies must pay administrative costs and sales representatives’commissions; hence, the expected rate of return on insurance premiums is generallylow or even negative. Use portfolio concepts to explain why people buy life insurancein spite of low expected returns.
- 1. Savings can replace a client need for insurance products. A. True B. False 2. SafeSave of Dhaka is an example of a high frequency saving model solution. A. True B. False 3. Ideally your marginal utility today will be equal to your marginal utility in the future adjusted for time value of money, or MUt = (1+r) / (1+δ) Et [MUt+1] A. True B. False 4. Moral hazard is not present for insurance products. A. True B. False 5. Mandatory savings which cannot be accessed by microloan clients until repayment can be seen as collateral or a fee for services. A. True B. Falsea) Explain the time value of money principle.b) Identify the underlying assumption of the time value of money principle.c) Suggest how you can minimise the amount of cash you must invest in order to reach your retirement goal.The process of reinvesting interest earned to generate additional earnings over time is ________. A. compounding B. discounting C. annuity D. lump-sum
- What do you understand by the present value of money? Group of answer choices A. Amount borrowed or deposited B. Maximum that can be deposited C. Sum of deposit and interest D. Another name for the futureLoan Amount Is $430,000 Loan is a 7/30 Balloon Loan Annual Interest is 3.75%, with monthly payments What Is the monthly payment for the loan? Enter as a positive numberAn investor is consider four different opportunities, A, B, C, or D. The payoff for each opportunity will depend on the economic conditions, represented in the payoff table below. Economic Condition Investment Poor Average Good Excellent (S1) (S2) (S3) (S4) A 50 75 20 30 B 80 15 40 50 C -100 300 -50 10 D 25 25 25 25 What decision would be made under minimax regret?