SlideShare a Scribd company logo
1 of 1
Download to read offline
I can invest funds at 5% APR. I am considering buying an annuity and I am comparing two
alternatives. Both are 15 years in length, with the same number of monthly payments (to me) of
$5,000. The first instrument pays at the end of the month while the second pays at the beginning
of the month. I believe that the second alternative must be worth more as the money comes to me
faster, but to the nearest dollar, how much more is it worth to me now?

More Related Content

More from allystraders

Suppose that the body weights of Roborovski dwarf hamsters are norma.pdf
Suppose that the body weights of Roborovski dwarf hamsters are norma.pdfSuppose that the body weights of Roborovski dwarf hamsters are norma.pdf
Suppose that the body weights of Roborovski dwarf hamsters are norma.pdfallystraders
 
Suppose that in a particular country, the TFR fell to zero and remai.pdf
Suppose that in a particular country, the TFR fell to zero and remai.pdfSuppose that in a particular country, the TFR fell to zero and remai.pdf
Suppose that in a particular country, the TFR fell to zero and remai.pdfallystraders
 
Suppose that disposable income, consumption, and saving in some coun.pdf
Suppose that disposable income, consumption, and saving in some coun.pdfSuppose that disposable income, consumption, and saving in some coun.pdf
Suppose that disposable income, consumption, and saving in some coun.pdfallystraders
 
Suppose that 60 of students at Kansas State University have listene.pdf
Suppose that 60 of students at Kansas State University have listene.pdfSuppose that 60 of students at Kansas State University have listene.pdf
Suppose that 60 of students at Kansas State University have listene.pdfallystraders
 
Suppose Maria and Jamal both face the following individual loss dist.pdf
Suppose Maria and Jamal both face the following individual loss dist.pdfSuppose Maria and Jamal both face the following individual loss dist.pdf
Suppose Maria and Jamal both face the following individual loss dist.pdfallystraders
 
Suppose a random variable X has the following probability distributi.pdf
Suppose a random variable X has the following probability distributi.pdfSuppose a random variable X has the following probability distributi.pdf
Suppose a random variable X has the following probability distributi.pdfallystraders
 
Suppose a country had a smaller increase in debt in 2011 than it had.pdf
Suppose a country had a smaller increase in debt in 2011 than it had.pdfSuppose a country had a smaller increase in debt in 2011 than it had.pdf
Suppose a country had a smaller increase in debt in 2011 than it had.pdfallystraders
 
how would implement empowerment techniques within a service Choose .pdf
how would implement empowerment techniques within a service Choose .pdfhow would implement empowerment techniques within a service Choose .pdf
how would implement empowerment techniques within a service Choose .pdfallystraders
 
How were the management controls at Siemens prior to the Bribery sca.pdf
How were the management controls at Siemens prior to the Bribery sca.pdfHow were the management controls at Siemens prior to the Bribery sca.pdf
How were the management controls at Siemens prior to the Bribery sca.pdfallystraders
 
How would I create this diagramRentTool Viewpoints � Technology .pdf
How would I create this diagramRentTool Viewpoints � Technology .pdfHow would I create this diagramRentTool Viewpoints � Technology .pdf
How would I create this diagramRentTool Viewpoints � Technology .pdfallystraders
 
How well did Thaldorf interact with each member of the DMUOn what.pdf
How well did Thaldorf interact with each member of the DMUOn what.pdfHow well did Thaldorf interact with each member of the DMUOn what.pdf
How well did Thaldorf interact with each member of the DMUOn what.pdfallystraders
 
How do increasing atmospheric CO2 emissions threaten sea creatures, .pdf
How do increasing atmospheric CO2 emissions threaten sea creatures, .pdfHow do increasing atmospheric CO2 emissions threaten sea creatures, .pdf
How do increasing atmospheric CO2 emissions threaten sea creatures, .pdfallystraders
 
How do propensities and multipliers, and even expectations affect th.pdf
How do propensities and multipliers, and even expectations affect th.pdfHow do propensities and multipliers, and even expectations affect th.pdf
How do propensities and multipliers, and even expectations affect th.pdfallystraders
 
HOw do you answer this questionProblem 12 The situations below .pdf
HOw do you answer this questionProblem 12 The situations below .pdfHOw do you answer this questionProblem 12 The situations below .pdf
HOw do you answer this questionProblem 12 The situations below .pdfallystraders
 
How do you explain the differences between ethnic groups in vitamin .pdf
How do you explain the differences between ethnic groups in vitamin .pdfHow do you explain the differences between ethnic groups in vitamin .pdf
How do you explain the differences between ethnic groups in vitamin .pdfallystraders
 
how can I put this in a boxplot graph please help Step 3 Action Pl.pdf
how can I put this in a boxplot graph please help  Step 3 Action Pl.pdfhow can I put this in a boxplot graph please help  Step 3 Action Pl.pdf
how can I put this in a boxplot graph please help Step 3 Action Pl.pdfallystraders
 
How can you contribute to the WHS consultation process Provide 4 ex.pdf
How can you contribute to the WHS consultation process Provide 4 ex.pdfHow can you contribute to the WHS consultation process Provide 4 ex.pdf
How can you contribute to the WHS consultation process Provide 4 ex.pdfallystraders
 
How can organizations justify investing in enterprise or portfolio p.pdf
How can organizations justify investing in enterprise or portfolio p.pdfHow can organizations justify investing in enterprise or portfolio p.pdf
How can organizations justify investing in enterprise or portfolio p.pdfallystraders
 
Hotelrestaurant managers have been on a quest to identify the most .pdf
Hotelrestaurant managers have been on a quest to identify the most .pdfHotelrestaurant managers have been on a quest to identify the most .pdf
Hotelrestaurant managers have been on a quest to identify the most .pdfallystraders
 
Houston y Dallas han tenido dificultades para contratar agentes de p.pdf
Houston y Dallas han tenido dificultades para contratar agentes de p.pdfHouston y Dallas han tenido dificultades para contratar agentes de p.pdf
Houston y Dallas han tenido dificultades para contratar agentes de p.pdfallystraders
 

More from allystraders (20)

Suppose that the body weights of Roborovski dwarf hamsters are norma.pdf
Suppose that the body weights of Roborovski dwarf hamsters are norma.pdfSuppose that the body weights of Roborovski dwarf hamsters are norma.pdf
Suppose that the body weights of Roborovski dwarf hamsters are norma.pdf
 
Suppose that in a particular country, the TFR fell to zero and remai.pdf
Suppose that in a particular country, the TFR fell to zero and remai.pdfSuppose that in a particular country, the TFR fell to zero and remai.pdf
Suppose that in a particular country, the TFR fell to zero and remai.pdf
 
Suppose that disposable income, consumption, and saving in some coun.pdf
Suppose that disposable income, consumption, and saving in some coun.pdfSuppose that disposable income, consumption, and saving in some coun.pdf
Suppose that disposable income, consumption, and saving in some coun.pdf
 
Suppose that 60 of students at Kansas State University have listene.pdf
Suppose that 60 of students at Kansas State University have listene.pdfSuppose that 60 of students at Kansas State University have listene.pdf
Suppose that 60 of students at Kansas State University have listene.pdf
 
Suppose Maria and Jamal both face the following individual loss dist.pdf
Suppose Maria and Jamal both face the following individual loss dist.pdfSuppose Maria and Jamal both face the following individual loss dist.pdf
Suppose Maria and Jamal both face the following individual loss dist.pdf
 
Suppose a random variable X has the following probability distributi.pdf
Suppose a random variable X has the following probability distributi.pdfSuppose a random variable X has the following probability distributi.pdf
Suppose a random variable X has the following probability distributi.pdf
 
Suppose a country had a smaller increase in debt in 2011 than it had.pdf
Suppose a country had a smaller increase in debt in 2011 than it had.pdfSuppose a country had a smaller increase in debt in 2011 than it had.pdf
Suppose a country had a smaller increase in debt in 2011 than it had.pdf
 
how would implement empowerment techniques within a service Choose .pdf
how would implement empowerment techniques within a service Choose .pdfhow would implement empowerment techniques within a service Choose .pdf
how would implement empowerment techniques within a service Choose .pdf
 
How were the management controls at Siemens prior to the Bribery sca.pdf
How were the management controls at Siemens prior to the Bribery sca.pdfHow were the management controls at Siemens prior to the Bribery sca.pdf
How were the management controls at Siemens prior to the Bribery sca.pdf
 
How would I create this diagramRentTool Viewpoints � Technology .pdf
How would I create this diagramRentTool Viewpoints � Technology .pdfHow would I create this diagramRentTool Viewpoints � Technology .pdf
How would I create this diagramRentTool Viewpoints � Technology .pdf
 
How well did Thaldorf interact with each member of the DMUOn what.pdf
How well did Thaldorf interact with each member of the DMUOn what.pdfHow well did Thaldorf interact with each member of the DMUOn what.pdf
How well did Thaldorf interact with each member of the DMUOn what.pdf
 
How do increasing atmospheric CO2 emissions threaten sea creatures, .pdf
How do increasing atmospheric CO2 emissions threaten sea creatures, .pdfHow do increasing atmospheric CO2 emissions threaten sea creatures, .pdf
How do increasing atmospheric CO2 emissions threaten sea creatures, .pdf
 
How do propensities and multipliers, and even expectations affect th.pdf
How do propensities and multipliers, and even expectations affect th.pdfHow do propensities and multipliers, and even expectations affect th.pdf
How do propensities and multipliers, and even expectations affect th.pdf
 
HOw do you answer this questionProblem 12 The situations below .pdf
HOw do you answer this questionProblem 12 The situations below .pdfHOw do you answer this questionProblem 12 The situations below .pdf
HOw do you answer this questionProblem 12 The situations below .pdf
 
How do you explain the differences between ethnic groups in vitamin .pdf
How do you explain the differences between ethnic groups in vitamin .pdfHow do you explain the differences between ethnic groups in vitamin .pdf
How do you explain the differences between ethnic groups in vitamin .pdf
 
how can I put this in a boxplot graph please help Step 3 Action Pl.pdf
how can I put this in a boxplot graph please help  Step 3 Action Pl.pdfhow can I put this in a boxplot graph please help  Step 3 Action Pl.pdf
how can I put this in a boxplot graph please help Step 3 Action Pl.pdf
 
How can you contribute to the WHS consultation process Provide 4 ex.pdf
How can you contribute to the WHS consultation process Provide 4 ex.pdfHow can you contribute to the WHS consultation process Provide 4 ex.pdf
How can you contribute to the WHS consultation process Provide 4 ex.pdf
 
How can organizations justify investing in enterprise or portfolio p.pdf
How can organizations justify investing in enterprise or portfolio p.pdfHow can organizations justify investing in enterprise or portfolio p.pdf
How can organizations justify investing in enterprise or portfolio p.pdf
 
Hotelrestaurant managers have been on a quest to identify the most .pdf
Hotelrestaurant managers have been on a quest to identify the most .pdfHotelrestaurant managers have been on a quest to identify the most .pdf
Hotelrestaurant managers have been on a quest to identify the most .pdf
 
Houston y Dallas han tenido dificultades para contratar agentes de p.pdf
Houston y Dallas han tenido dificultades para contratar agentes de p.pdfHouston y Dallas han tenido dificultades para contratar agentes de p.pdf
Houston y Dallas han tenido dificultades para contratar agentes de p.pdf
 

Recently uploaded

Sensory_Experience_and_Emotional_Resonance_in_Gabriel_Okaras_The_Piano_and_Th...
Sensory_Experience_and_Emotional_Resonance_in_Gabriel_Okaras_The_Piano_and_Th...Sensory_Experience_and_Emotional_Resonance_in_Gabriel_Okaras_The_Piano_and_Th...
Sensory_Experience_and_Emotional_Resonance_in_Gabriel_Okaras_The_Piano_and_Th...Pooja Bhuva
 
Key note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdfKey note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdfAdmir Softic
 
Introduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The BasicsIntroduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The BasicsTechSoup
 
Jamworks pilot and AI at Jisc (20/03/2024)
Jamworks pilot and AI at Jisc (20/03/2024)Jamworks pilot and AI at Jisc (20/03/2024)
Jamworks pilot and AI at Jisc (20/03/2024)Jisc
 
How to Manage Global Discount in Odoo 17 POS
How to Manage Global Discount in Odoo 17 POSHow to Manage Global Discount in Odoo 17 POS
How to Manage Global Discount in Odoo 17 POSCeline George
 
How to Give a Domain for a Field in Odoo 17
How to Give a Domain for a Field in Odoo 17How to Give a Domain for a Field in Odoo 17
How to Give a Domain for a Field in Odoo 17Celine George
 
Python Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docxPython Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docxRamakrishna Reddy Bijjam
 
This PowerPoint helps students to consider the concept of infinity.
This PowerPoint helps students to consider the concept of infinity.This PowerPoint helps students to consider the concept of infinity.
This PowerPoint helps students to consider the concept of infinity.christianmathematics
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxheathfieldcps1
 
Single or Multiple melodic lines structure
Single or Multiple melodic lines structureSingle or Multiple melodic lines structure
Single or Multiple melodic lines structuredhanjurrannsibayan2
 
General Principles of Intellectual Property: Concepts of Intellectual Proper...
General Principles of Intellectual Property: Concepts of Intellectual  Proper...General Principles of Intellectual Property: Concepts of Intellectual  Proper...
General Principles of Intellectual Property: Concepts of Intellectual Proper...Poonam Aher Patil
 
Graduate Outcomes Presentation Slides - English
Graduate Outcomes Presentation Slides - EnglishGraduate Outcomes Presentation Slides - English
Graduate Outcomes Presentation Slides - Englishneillewis46
 
Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)Jisc
 
2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx
2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx
2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptxMaritesTamaniVerdade
 
Application orientated numerical on hev.ppt
Application orientated numerical on hev.pptApplication orientated numerical on hev.ppt
Application orientated numerical on hev.pptRamjanShidvankar
 
Interdisciplinary_Insights_Data_Collection_Methods.pptx
Interdisciplinary_Insights_Data_Collection_Methods.pptxInterdisciplinary_Insights_Data_Collection_Methods.pptx
Interdisciplinary_Insights_Data_Collection_Methods.pptxPooja Bhuva
 
Unit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptxUnit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptxVishalSingh1417
 
HMCS Max Bernays Pre-Deployment Brief (May 2024).pptx
HMCS Max Bernays Pre-Deployment Brief (May 2024).pptxHMCS Max Bernays Pre-Deployment Brief (May 2024).pptx
HMCS Max Bernays Pre-Deployment Brief (May 2024).pptxEsquimalt MFRC
 
Beyond_Borders_Understanding_Anime_and_Manga_Fandom_A_Comprehensive_Audience_...
Beyond_Borders_Understanding_Anime_and_Manga_Fandom_A_Comprehensive_Audience_...Beyond_Borders_Understanding_Anime_and_Manga_Fandom_A_Comprehensive_Audience_...
Beyond_Borders_Understanding_Anime_and_Manga_Fandom_A_Comprehensive_Audience_...Pooja Bhuva
 

Recently uploaded (20)

Sensory_Experience_and_Emotional_Resonance_in_Gabriel_Okaras_The_Piano_and_Th...
Sensory_Experience_and_Emotional_Resonance_in_Gabriel_Okaras_The_Piano_and_Th...Sensory_Experience_and_Emotional_Resonance_in_Gabriel_Okaras_The_Piano_and_Th...
Sensory_Experience_and_Emotional_Resonance_in_Gabriel_Okaras_The_Piano_and_Th...
 
Key note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdfKey note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdf
 
Introduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The BasicsIntroduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The Basics
 
Jamworks pilot and AI at Jisc (20/03/2024)
Jamworks pilot and AI at Jisc (20/03/2024)Jamworks pilot and AI at Jisc (20/03/2024)
Jamworks pilot and AI at Jisc (20/03/2024)
 
How to Manage Global Discount in Odoo 17 POS
How to Manage Global Discount in Odoo 17 POSHow to Manage Global Discount in Odoo 17 POS
How to Manage Global Discount in Odoo 17 POS
 
How to Give a Domain for a Field in Odoo 17
How to Give a Domain for a Field in Odoo 17How to Give a Domain for a Field in Odoo 17
How to Give a Domain for a Field in Odoo 17
 
Python Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docxPython Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docx
 
This PowerPoint helps students to consider the concept of infinity.
This PowerPoint helps students to consider the concept of infinity.This PowerPoint helps students to consider the concept of infinity.
This PowerPoint helps students to consider the concept of infinity.
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
 
Single or Multiple melodic lines structure
Single or Multiple melodic lines structureSingle or Multiple melodic lines structure
Single or Multiple melodic lines structure
 
General Principles of Intellectual Property: Concepts of Intellectual Proper...
General Principles of Intellectual Property: Concepts of Intellectual  Proper...General Principles of Intellectual Property: Concepts of Intellectual  Proper...
General Principles of Intellectual Property: Concepts of Intellectual Proper...
 
Graduate Outcomes Presentation Slides - English
Graduate Outcomes Presentation Slides - EnglishGraduate Outcomes Presentation Slides - English
Graduate Outcomes Presentation Slides - English
 
Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)
 
2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx
2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx
2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx
 
Application orientated numerical on hev.ppt
Application orientated numerical on hev.pptApplication orientated numerical on hev.ppt
Application orientated numerical on hev.ppt
 
Mehran University Newsletter Vol-X, Issue-I, 2024
Mehran University Newsletter Vol-X, Issue-I, 2024Mehran University Newsletter Vol-X, Issue-I, 2024
Mehran University Newsletter Vol-X, Issue-I, 2024
 
Interdisciplinary_Insights_Data_Collection_Methods.pptx
Interdisciplinary_Insights_Data_Collection_Methods.pptxInterdisciplinary_Insights_Data_Collection_Methods.pptx
Interdisciplinary_Insights_Data_Collection_Methods.pptx
 
Unit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptxUnit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptx
 
HMCS Max Bernays Pre-Deployment Brief (May 2024).pptx
HMCS Max Bernays Pre-Deployment Brief (May 2024).pptxHMCS Max Bernays Pre-Deployment Brief (May 2024).pptx
HMCS Max Bernays Pre-Deployment Brief (May 2024).pptx
 
Beyond_Borders_Understanding_Anime_and_Manga_Fandom_A_Comprehensive_Audience_...
Beyond_Borders_Understanding_Anime_and_Manga_Fandom_A_Comprehensive_Audience_...Beyond_Borders_Understanding_Anime_and_Manga_Fandom_A_Comprehensive_Audience_...
Beyond_Borders_Understanding_Anime_and_Manga_Fandom_A_Comprehensive_Audience_...
 

I can invest funds at 5 APR. I am considering buying an annuity and.pdf

  • 1. I can invest funds at 5% APR. I am considering buying an annuity and I am comparing two alternatives. Both are 15 years in length, with the same number of monthly payments (to me) of $5,000. The first instrument pays at the end of the month while the second pays at the beginning of the month. I believe that the second alternative must be worth more as the money comes to me faster, but to the nearest dollar, how much more is it worth to me now?