Annuity, Financial Accounting

Assignment Help:

An annuity is explained as stream of uniform duration cash flows. The payment of life insurance premium through the policyholder to the insurance company is an illustration of an annuity. As the same, a deposit in a recurring bank account is also an annuity.

Based on the timing of the cash flows annuities are categorized as:

a)  Regular Annuity or Deferred Annuity

b) Annuity Due.

The regular annuity or the deferred annuity is such annuities wherein the cash flow arises at the end of all period. In case of an annuity due the cash flow arises at the starting of the period.


Related Discussions:- Annuity

Leverage, Evaluate the importance of leverage in financial management of a ...

Evaluate the importance of leverage in financial management of a small scale company

Calculate the weighted average cost of capital, Verizon Corporation has 55%...

Verizon Corporation has 55% equity and 45% debt (market values) in its capital structure. The pretax cost of debt is 7%, and that of equity 12%. The total value of the company is $

Shorter discounting periods, Occasionally cash flows may have to be discoun...

Occasionally cash flows may have to be discounted more often than once a year semi- monthly, daily, annually or quarterly.  The outcome of this is as fold (i)  The number of per

Cashflows from investing activities-group accounts, Cashflows from investin...

Cashflows from investing activities Involving activities involve the acquisition and disposal of non-current assets such as; property, plant and equipment, intangible assets, a

Fakari had the following asset at the ending of the year, Fakari had the fo...

Fakari had the following asset at the ending of the year 2013 having started the business at the beginning of the same year. kSH.000 Account payables 15,800 equipment 46,000

Financial management, What can a financial institution often do for a defic...

What can a financial institution often do for a deficit economic unit (DEU)that it would have difficulty doing for itself if the DEU were to deal directly with an SEU?

Horizontial and Vertical Analysis, #qUsing these data from the comparative ...

#qUsing these data from the comparative balance sheet of Junior Company, perform horizontal analysis. JUNIOR COMPANY

What is the break-even point in sales and units, The Soft-Flow Ink Company'...

The Soft-Flow Ink Company's income statement for the preceding year is presented below. Except as noted, the costs revenue relationship for the coming year is expected to follow t

Determine the npv of future cash flows, While many people know that Sonora,...

While many people know that Sonora, Mexico is a beautiful vacation spot, it is also a large furniture manufacturing location in North America. Guillermo Navallez made furniture for

Flow meter in an ongoing operation, You are considering whether to replace ...

You are considering whether to replace an existing flow meter in an ongoing operation. A change in the meter will have not affect revenues but will reduce costs. The existing meter

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd