The difference between ordinary Annuity and Annuity Due are below: Ordinary Annuity: Definition: Ordinary annuity is the payment or receipt occurs at the end of each period. Cash flows start: At the end of each period. Indicator: End…

The time value of money relevant to making financial decisions because: Investment decision: Investment in current tear and cash inflows received in future from that Investment can he measured and evaluated under the concept of…

Rule of 69 Use N = 69 when dealing with any continuous growth process, or when you have a periodic growth process and the rate is between 0% and 0.5%. Example: A culture of cells…

The time value of money theory states that a dollar that you have in the bank today is worth more than a reliable promise or expectation of receiving a dollar at some future date. You…