Which one of the following statements related to annuities and perpetuities is correct? multiple choice an ordinary annuity is worth more than an annuity due given equal annual cash flows for 10 years at 7 percent interest, compounded annually. a perpetuity comprised of $100 monthly payments is worth more than an annuity of $100 monthly payments provided the discount rates are equal. most loans are a form of a perpetuity. the present value of a perpetuity cannot be computed but the future value can. perpetuities are finite but annuities are not.

A perpetuity comprised of $100 monthly payments is worth more than an annuity of $100 monthly payments provided the discount rates are equal.

Explanation:

There is the basic difference of time duration in the payments. Under perpetuity the payments are for an unlimited period, and under annuity the period is defined.

As the payments are indefinite in perpetuity the amount will be higher in comparison to a limited period payments under annuity, also provided the interest rate is same for both.

Thus, the chosen statement is correct.

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o

answer; niosh, the national institute for occupational safety and health;