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    What Is It Activity 1: Question and Answer Directions: Answer The Questions Briefly. Write Your Answers in A Separate

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    John Daniel Antolin
    1. General Annuity is an annuity where interest is compounded quarterly but payments are made monthly. General Ordinary Annuity is a series of equal periodic cash flows that begin at the end of each time interval. 2. To find the present value of a General Ordinary Annuity, the cash flows are discounted manually using the present value of a single sum formula and summed. The future value formula is similar but calculates the total value after the last payment. 3. Fair market value is calculated as the down payment plus the present value. It considers adjusted assets and liabilities, intangible assets, off-balance sheet assets, and unrecorded liabilities.

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    What Is It Activity 1: Question and Answer Directions: Answer The Questions Briefly. Write Your Answers in A Separate

    Uploaded by

    John Daniel Antolin
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    1. General Annuity is an annuity where interest is compounded quarterly but payments are made monthly. General Ordinary Annuity is a series of equal periodic cash flows that begin at the end of each time interval. 2. To find the present value of a General Ordinary Annuity, the cash flows are discounted manually using the present value of a single sum formula and summed. The future value formula is similar but calculates the total value after the last payment. 3. Fair market value is calculated as the down payment plus the present value. It considers adjusted assets and liabilities, intangible assets, off-balance sheet assets, and unrecorded liabilities.

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    Week 4 General Annuity Take Away

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    1. General Annuity is an annuity where interest is compounded quarterly but payments are made monthly. General Ordinary Annuity is a series of equal periodic cash flows that begin at the end of each time interval. 2. To find the present value of a General Ordinary Annuity, the cash flows are discounted manually using the present value of a single sum formula and summed. The future value formula is similar but calculates the total value after the last payment. 3. Fair market value is calculated as the down payment plus the present value. It considers adjusted assets and liabilities, intangible assets, off-balance sheet assets, and unrecorded liabilities.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    43 views2 pages

    What Is It Activity 1: Question and Answer Directions: Answer The Questions Briefly. Write Your Answers in A Separate

    Uploaded by

    John Daniel Antolin
    1. General Annuity is an annuity where interest is compounded quarterly but payments are made monthly. General Ordinary Annuity is a series of equal periodic cash flows that begin at the end of each time interval. 2. To find the present value of a General Ordinary Annuity, the cash flows are discounted manually using the present value of a single sum formula and summed. The future value formula is similar but calculates the total value after the last payment. 3. Fair market value is calculated as the down payment plus the present value. It considers adjusted assets and liabilities, intangible assets, off-balance sheet assets, and unrecorded liabilities.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 2

    PAHILANGA,ANELA 11-FEYNMAN

    What is it…
    Activity 1: Question and Answer

    Directions: Answer the questions briefly. Write your answers in a separate


    sheet of paper.

    1. Differentiate General Annuity and General Ordinary Annuity?


    * General Annuity is an annuity for which the interest rate is compounded
    quarterly while payments are made monthly,in the other hand General
    Ordinary Annuity is an equal periodic cash flows that begin at the end of
    each time interval.

    2. What is a General Ordinary Annuity?

    * An ordinary annuity is a series of regular payments made at the end


    of each period, such as monthly or quarterly. In an annuity due, by contrast,
    payments are made at the beginning of each period. Consistent quarterly stock
    dividends are one example of an ordinary annuity; monthly rent is an example
    of an annuity due.

    3. Express the process in finding the Present and future value of General
    ordinary annuity.

    * One way to find the present value of an ordinary annuity is to


    manually discount each cash flow in the stream using the formula for present
    value of a single sum and then summing all the component present values to
    find the present value of the annuity. Where PMT is the periodic payment in
    annuity, r is the annual percentage interest rate, n is the number of years
    between time 0 and the relevant payment date and m is the number of annuity
    payments per year.

    * If you know how much you'll pay each month, the interest rate you'll
    receive, and the number of months or years you intend to pay into the annuity,
    you can use a formula very similar to PV to calculate the annuity's future value
    (FV).

    FV of annuity = P * [((1 + r) ^(n)) - 1 / r ]

    Where:

    P = periodic payment

    r = periodic interest rate

    n = number of periods
    You can also use the FV formula to calculate other annuities, such
    as a loan, where you know your fixed payments, the interest rate charged, and
    the number of payments. Calculating the FV would reveal your total cost for
    the loan.

    4. What is the formula in finding the Fair Market Value?

    *FMV = Down Payment + Present Value

    5. Express the process in finding the Fair Market Value.

    * Under the assets approach method, the fair market value (FMV) is
    calculated by computing the adjusted assets and liabilities held by a company.
    It takes into account intangible assets, off-balance sheet assets, and unrecorded
    liabilities.

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