If We Want to Know the Value of Present-Day Assets

question 18

Multiple Choice

If we want to know the value of present-day assets at a future date,we can use:

• A)Present value computations.
• B)Annuity computations.
• C)Interest computations.
• D)Future value computations.
• E)Earnings computations.

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Definitions:

Equal Annual Deposits

Routine, consistent amounts of money deposited into an account or investment over a set period.

College Tuition

Refers to the amount of money charged by colleges or universities for instruction and other services.

Annuity Due

A type of annuity payment that is due at the beginning of each period, as opposed to at the end, which affects valuation and payment calculations.

Ordinary Annuity

A series of equal payments made at the end of consecutive periods over a fixed length of time.