An annuity contract will pay you $4,000 a year (end of year) for the next three years. Or, you can choose to receive $12,610 at the end of the third. Assuming that you can earn 8% on investments, you should
A)
choose to receive the $4,000 annuity payments.
B)
choose to receive the $12,610 payment.
C)
flip a coin to make the choice; each is equally attractive.
D)
flip a coin to make the choice; each is equally unattractive.
A
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All of the following illustrate lessons learned regarding the 2008-2009 financial crisis except
A) housing conditions have a strong impact on the economy. B) economic conditions affect the demand for homes. C) sellers were able to attract potential buyers by slightly reducing sale prices. D) allowing unqualified mortgage applicants to qualify for mortgages hurt the housing market.
On June 1, Nicholson Company purchased inventory on account with a cost of $1300. Credit terms were 2/10, net 30. On June 2, Nicholson Company returned 40 percent of the inventory. Nicholson Company uses the perpetual inventory system
What journal entry did Nicholson Company prepare on June 2? A) debit Purchase Returns for $1300 and credit Accounts Payable for $1300 B) debit Cash for $1300 and credit Accounts Payable for $1300 C) debit Purchase Returns for $520 and credit Accounts Payable for $520 D) debit Accounts Payable for $520 and credit Inventory for $520