An ordinary annuity is best defined by which one of the following?
A. increasing payments paid for a definitive period of time
B. increasing payments paid forever
C. equal payments paid at regular intervals over a stated time period
D. equal payments paid at regular intervals of time on an ongoing basis
E. unequal payments that occur at set intervals for a limited period of time
Which one of the following rates represents the change, if any, in your purchasing
power as a result of owning a bond?
A. risk-free rate
B. realized rate
C. nominal rate
D. real rate
E. current rate
Each business day, on average, a company writes checks totaling $26,000 to pay its
suppliers. The usual clearing time for the checks is 5 days. Meanwhile, the company is
receiving payments from its customers each day, in the form of checks, totaling
$40,000. The cash from the payments is available to the firm after 2 days. What is the
amount of the firm's average net float?
Webster & Moore paid $139,000, in cash, for a piece of equipment 3 years ago. At the
beginning of last year, the company spent $21,000 to update the equipment with the
latest technology. The company no longer uses this equipment in its current operations