which statements represent disadvantages of issuing additional shares of stock? (select all that apply)

Answers

Answer 1

The disadvantages of issuing additional shares of stocks are it can shift control of the firm,Dividends are not tax deductible.

What is the effect of issuing more shares?The quantity of common stock traded on the stock market rises when corporations issue more shares.Too many shares being issued could dilute current investors' holdings.Share dilution happens because the extra shares make the existing shares less valuable to investors.The drawback of issuing stock is that you are ceding some ownership of your company to the stockholders, who may or may not have a say in how you manage and expand your company.You are therefore under increased pressure to make your company successful for the benefit of the stockholders as well as yourself. By shelling shares, the founders of business gives away their controlling rights. Investors may choose directors that oppose founders. In some circumstances, investors kicked out founders  from the business.

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Answer 2

Answer:

dividends are not tax deductible

it can shift control of the firm

Explanation:


Related Questions

which of the following is not a theory for imposing liability in tort? group of answer choices strict liability. intentional conduct. negligent conduct. criminal conduct.

Answers

In tort law, strict liability is the imposition of legal responsibility on a birthday celebration except finding a fault (such as negligence or Tortious intent).

The plaintiff solely wishes to proof that the tort befell and that the defendant used to be responsible

What is pigeon hole theory in torts?

Only well-defined wrongs ought to be regarded as tort and restrained within a small box acknowledged as a pigeon hole. He in contrast the area of tort to that of a pigeon gap with a wide variety of smaller holes. These smaller holes would symbolize assault, slander, battery, malicious prosecution, and all the identified wrongs.

What is the difference between Salmond and Winfield concept of regulation of tort?

Winfield proposed that “ each and every damage is a tort unless justified”, whereas Salmond said that “ no injury can be said to be tort till or until they fulfill the condition of pigeon hole”.

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kibble bites and chow hound, two makers of dog food, agree that kibble bites will sell its lamb and rice dog food in new jersey but not in delaware, and chow hound will sell its lamb and rice dog food in delaware but not in new jersey. their agreement is a:

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The agreement between Kibble Bites and Chow Hound is a horizontal market division.

A horizontal market is varied in such a way that the goods produced may satisfy the demands of multiple industries. A horizontal market is where the output goods or services are extensively used and in high demand, posing low risk to the producers in terms of output demand. However, there is sometimes fierce competition among producers in the sector.

Only one market level is involved in a horizontal market segmentation. An illustration of a horizontal market-division agreement would be four businesses that produce the same type of widgets and agree to share the market in which they sell those widgets.

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the ranking performance appraisal system tries to improve performance ratings by forcing managers to:

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In order to improve performance evaluations, the behaviorally anchored rating scale performance appraisal system requires managers to: Rate employees based on their actions, not their attributes.

A real estate appraisal, property valuation, or land valuation is the process of forming an opinion of valuation for real property. As opposed to corporate stocks, which are exchanged everyday and are identical, real estate transactions usually require assessments because every property is different and there are few of them. A property, company, antique, or even a collection is assessed for its fair market value through an appraisal. Items that are rarely traded and frequently rare or distinctive are valuation through appraisals. The stated rationale and scope of an appraisal assignment, i.e., to conduct an analysis or consulting assignment to real property decisions, or to estimate a specific value of any real property interest, serve as the purpose of the appraisal.

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How does the increasing water scarcity in Egypt affect prices and even the availability of some goods and services?

Answers

Answer:

because input price increases the out put price also increases

Explanation:

the law of supply

accrotime is a manufacturer of quartz crystal watches. accrotime researchers have shown that the watches have an average life of 36 months before certain electronic components deteriorate, causing the watch to become unreliable. the standard deviation of watch lifetimes is 6 months, and the distribution of lifetimes is normal. (a) if accrotime guarantees a full refund on any defective watch for 2 years after purchase, what percentage of total production will the company expect to replace? (round your answer to two decimal places.) % (b) if accrotime does not want to make refunds on more than 15% of the watches it makes, how long should the guarantee period be (to the nearest month)? months

Answers

The percentage of total production the company expect to replace = 34.46% . And the guarantee period of watch must be 12 months.

Guarantee period :

Guarantee Period shall express the period during which the Contractor shall remain liable without any redundant expense to the Purchaser for form, replace or reform any imperfect part or performance of the Stores provisioned under the Contract.

Evaluating the given problem :

mean = μ = 36

standard deviation = σ = 6

a) P(x < 24) = P[(x - μ) / σ < (24 - 36) / 6]

                = P(z < - 2 )

Using z table,

                              = 0.3446

The percentage is = 34.46%

b) Using standard normal table,

P(Z < z) = 15 %

= P(Z < z) = 0.15  

= P(Z < -1.55) = 0.15  

z = -1.55

Using z-score formula,

x = z × σ + μ

x = -1.55 × 15 + 36

x = 12.75

x = 12 months.

Why Do Customers Return Their Purchases?

The most usual reasons of purchase returns are unmet expectations, damaged or imperfect products, and mistaken fit. Any of these issues can be caused by collapses on the trader's part or by occurrences the trader had no control over.

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Which type of networking doesn’t require a password to access?

A. The intranet
B. The extranet
C. The internet
D. The infranet

Answers

Answer:

C. The internet

Explanation:

all of the other options need user authorization to access it

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How are securities issued by the state and local governments and corporate bonds similar ?
How are they different ?

Answers

The similarity between government bonds and corporate bonds are:

they are exposed to interest rate riskthey have credit or default risk

The difference between government bonds and corporate bonds is that the corporate bonds are issued by corporations and offer a higher yield relative to a government bond due to the higher risk of insolvency.

What are corporate bonds and government securities?

Basically, a securities refers to a financial instrument that has monetary value and can be traded. They are classified as either equity securities such as stocks and debt securities such as bonds and debentures.

In a financial market, there are two entities that issues bonds which are government and private companies. All bonds issued by the government are called government bonds while the bonds issued by private organisations are called corporate bonds.

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you want to configure nat so that packets from all hosts on network 192.168.2.0 will share the registered ip address 24.1.2.8 as shown. you have already identified the inside and outside nat interfaces on the router. which of the following command options will translate all inside host addresses to the single registered ip address?

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Due to NTP's high efficiency, two machines can be synchronized to within one millisecond of one another with just one packet sent per minute.

What are Registers?One of the few data storage areas that are a part of the computer processor is a processor register (CPU register). An instruction, a storage location, or any other type of data could be stored in a register (such as a bit sequence or individual characters). Registers are mentioned in some instructions as a part of the instruction.The register is used in computer organization to recognize, store, and transfer information and instructions that are being used quickly by the CPU. There are various register types that are used for various purposes. Several of the frequently used registers include: DR for accumulatorA type of computer memory called a register is used to quickly accept, store, and transfer data and instructions that the CPU needs right away. Processor registers are a common name for the registers used by the CPU.

Hence,NTP's high efficiency, two machines can be synchronized to within one millisecond of one another with just one packet sent per minute.

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From the mid-1950s until the early 1970s, organizations managed their data in a _________; this created ________.

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From the mid-1950s until the early 1970s, organizations managed their data in a file management environment; this created information silos.

An Information silo, or a set of such silos, is an insular control device wherein one facts device or subsystem is incapable of reciprocal operation with others that are, or ought to be, associated. for that reason, information isn't always accurately shared however alternatively remains sequestered within each machine or subsystem, figuratively trapped inside a field like grain is trapped inside a silo: there may be tons of it, and it can be stacked pretty high and freely to be had within those limits, but it has no impact out of doors the one's limits.  

Such information silos are proving to be an impediment for businesses wishing to use information mining to make efficient use of their data. Information silos arise on every occasion a records device is incompatible or no longer incorporated with other facts systems.  

This incompatibility can also arise inside the technical structure, in the utility structure, or inside the facts architecture of any statistics machine. However, since it has been proven that hooked-up facts modeling techniques are the foundation cause of the data integration trouble, most data structures are as a minimum incompatible inside the data architecture layer.

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terence works for a u.s.-based company that has decided to stop sending products to malaysia because that country has established a 74% of value tax rate on every item that comes into the country. what type of political and legal force is in place in malaysia? multiple choice question.

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The Yang di-Petrean Agong is the head of state and the Prime Minister of Malaysia is the head of government in Malaysia, which is a federal representative democratic constitutional monarchy.

What type of political structure does Malaysia employ?

Malaysia, a federation made up of the 11 States of Malaya, the Borneo States of Sabah and Sarawak, and 3 Federal Territories, is categorized as a representative democracy and operates as a constitutional monarchy under the Westminster system. The United Malays National Organization (UMNO) has been in power since 1957 despite Malaysia having a multi-party parliamentary system and a constitutional monarchy, and opposition parties do not compete on an even playing field.

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owen's adjusted gross income for the year will be $150,000 and he is planning to make only one of following charitable donations. if he contributes $100,000 cash to a public charity, he can deduct $ . if he contributes property that is worth $80,000 to a public charity, he can deduct $ . or, if he contributes publicly traded stock with a fmv of $60,000

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AGI (adjusted gross income) is total gross earnings less above-the-line deductions such as the educator rate deduction or the scholar loan activity deduction.

These are located on Schedule 1 of Form 1040. Your taxable income is your AGI minus either the preferred or itemized deductions and the qualified enterprise profits deduction.

What is the method for AGI?

The AGI calculation is enormously straightforward. It is equal to the total earnings you report it is subject to profits tax—such as revenue from your job, self-employment, dividends and hobby from a bank account—minus unique deductions, or “adjustments” that you're eligible to take.

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grady received $8,200 of social security benefits this year. grady also reported salary and interest income this year. what amount of the benefits must grady include in his gross income under the following five independent situations? note: leave no answer blank. enter zero if applicable. required: grady files single and reports salary of $12,100 and interest income of $250. grady files single and reports salary of $22,000 and interest income of $600. grady files married joint and reports salary of $75,000 and interest income of $500. grady files married joint and reports salary of $44,000 and interest income of $700.

Answers

A. Amount to be included: $0 B. Amount to be included: $850 C. Amount to be included: $6,970 D. Amount to be included: $6,970 all includes social security benefits.

Grady excludes the full $8,200 because the total of his modified AGI ($12,100 + $250 + $4,100 (50% of Social Security benefits) = $16,450) and his Social Security benefits ($4,100 (50% of Social Security benefits) is less than the threshold ($25,000 for single taxpayers) for including Social Security benefits.

$850. Grady is single, and his modified AGI ($22,000 + $600 + $4,100 (50% of Social Security benefits) = $26,700) falls between $25,000 and $34,000. The smaller of (a) 50% of the Social Security benefits ($8,200 x 50% = $4,100) or (b) 50% of [$22,600 modified AGI + $4,100 (50 percent of Social Security benefits) $25,000] = $850] constitutes his taxable Social Security benefits. His taxable Social Security benefits total $850 as a result. Grady includes $8,200 of benefits, or 85% of them, or $6,970 ($8,200 85%), because his modified AGI is significantly higher than the threshold for doing so ($44,000 for married couples).

$6,970. Grady files jointly with his spouse, and his modified AGI ($44,000 + $700 + $4,100 (half of Social Security benefits) = $48,800) is higher than the $44,000 threshold. The lesser of (a) 85% of Social Security benefits (85% $8,200 = $6,970) or (b) 85% of [$44,700 modified AGI + $4,100 (50% of Social Security benefits) $44,000] = $4,080] plus the smaller of (a) $6,000 or (b) 50% of Social Security benefits ($4,100) constitutes his taxable Social Security payments. This reduces to either $6,970 or $8,180 ($4,080 + $4,100), whichever is less. His taxable Social Security benefits total $6,970 as a result.

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the catalan atlas emphasizes which aspect of the western sudanic states? question 9 options: their muslim faith. their trade routes along the coast of the atlantic ocean. their agricultural diversity and productivity. their wealth in gold.

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The Catalan atlas emphasizes which aspect of the western Sudanic states their wealth in gold.

What is  wealth?

Wealth are valuable financial assets or physical assets that can be converted into a form that can be used for transactions. It includes the basic meaning as in the original Old English word weal, which comes from the Indo-European root. The modern concept of wealth is important in all economic fields and clearly from the point of view of growth economics and development economics, but the meaning of wealth depends on the context. A person with a significant net worth is called rich.

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austin spends all his income on food (f) and shelter (s). his budget line is given by the equation 5f 20s = 100. which of the following consumption bundles is part of his consumption possibilities?
a. 8 units of F and 3 units of S
b. 14 units of F and 2 units of S
c. 0 units of F and 6 units of S
d. 20 units of F and 15 units of S

Answers

8 units of F and 3 units of S consumption bundles is part of his consumption possibilities.

Consumption is the act of the usage of sources to fulfill present-day want and desires.[1] it's far seen in contrast to making an investment, that is spending for the acquisition of destiny earnings.[2] intake is a first-rate concept in economics and is likewise studied in lots of different social sciences. One of a kind colleges of economists define consumption differently. In line with mainstream economists, best the final buy of newly produced goods and offerings by way of individuals for fast use constitutes consumption, at the same time as other varieties of expenditure — specially, constant investment, intermediate consumption, and government spending — are positioned in separate categories (see customer choice). Other economists define intake lots greater extensively, because the mixture of all monetary interest that doesn't entail the design, production and marketing of goods and offerings.

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if the first copy cost of a music video is $223,000 and the marginal cost is $0, then as the firm produces an infinite quantity of the video, the average total cost of producing the video will approach:

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All marginal costs plus fixed costs are added to determine the total cost. If the company has zero marginal and constant marginal costs, the total cost will equal the $223,000 fixed cost.

The additional expense incurred in producing one more unit of an item or service is known as the marginal cost. It is derived from the variable cost of production because, once production has begun, there are no additional fixed costs associated with manufacturing another unit of a thing or service because fixed costs do not change as output does. All marginal costs combined with fixed costs equal the total cost. If the company's marginal costs are constant and zero, the total cost will be equal to the set price of $223,000

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the institute of ecolonomics seeks to create profitable business solutions that also serve environmental and societal concerns. these goals are an expression of what ethicists refer to as the .

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These goals are an expression of what ethicists refer to as the triple bottom line when the institute of economics seeks to create profitable business solutions.

The triple bottom line (TBL) in economics asserts that businesses should make a commitment to giving social and environmental concerns the same amount of attention as they give profits. The Triple Bottom Line (TBL) theory proposes that there should be three bottom lines: profit, people, and the environment. The idea behind the triple-bottom-line approach to business is that profits should benefit the community as a whole in addition to the CEO and shareholders.

A framework for change that businesses and other organizations can use to transform themselves in the direction of a more sustainable and regenerative future is the triple bottom line. To measure, benchmark, set goals, improve, and eventually evolve toward more sustainable systems and models, the triple bottom line includes a number of tools.

 

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the is a set of strategic decisions made about the product and its promotion, pricing, and distribution in order to satisfy customer needs in a target market.

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A set of strategic decisions made about the product and its promotion, pricing, and distribution to satisfy customers' needs and desires in the Marketing Mix.

Marketing is the set of activities, institutions, and processes for creating, communicating, delivering, and exchanging offers of value to customers, clients, partners, and society at large.

Marketing Mix Explained The 4 P's are product, price, location, and promotion. These are examples of the "marketing mix," or the combination of tools and methods that marketers use to achieve their marketing goals. E. first officially designed the 4 hp in 1960. In short, actions are taken to draw attention to a company's offering. This could be the physical goods you sell or the services you provide. Common examples of workplace marketing include TV commercials, roadside billboards, and magazine ads.

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shaw corporation, a u.s. firm based in oregon, and yun electronics, a chinese company, have teamed up and created a small firm in south korea to help penetrate the market for solar products there. this effort is referred to as a .

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This effort is referred to as a joint venture between the two companies.

A joint venture is a collaboration involving two or more individuals with the goal of growing one company or project for income while dividing the risks involved. Participants in the joint venture shall be at least two distinct natural persons or entities. The parties may contribute funds, manpower, assets, talent, expertise or other resources to a single company or project. It will depend on the particular facts of each instance whether or not a joint venture can be established. International market entry typically involves the use of joint ventures. Joint ventures are formed by foreign businesses and domestic firms that are already present in the markets they seek to enter.

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Why did keynes believe that fiscal policy was more powerful/effective than monetary policy?.

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The Keynesians believe that fiscal policy was more effective than monetary policy.

However, Keynesians remain uncertain of the effectiveness of the monetary policy. They claim that expansionary monetary policies that increase banking system reserves would not have to result in several expansions of the money supply because banks can easily stop lending out their excess reserves.

Keynes suggested that when the economy is booming with low unemployment and strong growth, the government should cut spending and run a surplus to reduce demand and prevent the economy from overheating.

In general, fiscal policy has a higher impact on consumers than monetary policy because it can lead to increased employment and income. Governments drain money from the economy and slow business activity by raising taxes.

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Which of the following statements regarding a restricted stock plan is correct?
a) The amount of the compensation is measured by the par value at the date of grant.
b) Once the shares vest and the restrictions are lifted, paid-in capitalârestricted stock is replaced by common stock and paid-in capitalâexcess of par.
c) The employee is free to sell the shares during the restriction period.
d) All of the choices are correct regarding restricted stock plans.

Answers

Answer: a

Explanation:

The correct response is option (b), meaning that restricted stock and paid-in capital excess of par are replaced once the shares vest and the restrictions are lifted.

What does restricted stock serve?

The limitations are meant to prevent premature selling that could harm the company. Under a multi-year timetable of graded vesting, restricted stock usually becomes tradable. Letter stock and section 1244 stock are other names for restricted stock.

Businesses may award shares to employees using restricted stock units. The grant complies with the criteria for a "restricted grant" in that it is subject to a vesting schedule that may be determined by performance criteria or length of service and is constrained by any further transfer or sale restrictions that your company may apply.

What distinguishes a stock option plan from a restricted stock plan?

When stock options are given, you have the choice to buy firm stock at a particular price before a particular date. It is entirely up to you whether you decide to buy the shares. RSUs, however, provide you the actual shares after the vesting period is through. You are not required to buy it.

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A group of friends were working on a student film that had a budget of $1500. They used $1260 of their budget on props. What percentage of their total budget did they spend on props?.

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The percentage of budget the group of friends spent on props is 84%.

The expression “Percentage” means “per cent” i.e., per 100 units. It represents one hundredth part of a quantity. Percentage is calculated by dividing given units of a quantity by total units of the same quantity and then multiplying the resultant by 100.

Total Budget available for student film = $1500

Budget used on props by group of friends = $1260

Percentage of budget spent by group of friends on props =

(Budget used on props ÷ Total Budget available for student film)×100

= ($1260÷$1500)×100

Dividing numerator and denominator by 15, we get

= ($84÷$100)×100

Cancelling 100 by 100, we get

= 84%

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When a company is able to expand its operations by exporting globally, it can often achieve greater economies of scale which results in ______.

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When a business is able to grow by exporting its products around the world, it can frequently attain larger economies of scale, which leads to reduced unit costs.

A company's production unit cost often goes down as it grows. This reduction is the result of economies of scale. By employing the least expensive production techniques, profits will be maximized.

Consumers' prices are lowered as a result of lower cost-per-unit, which increases their real wages overall and makes it easier for them to locate affordable goods.

Businesses from one country offer their goods and services to clients or consumers in another country through the exporting process.

When a company produces more goods at a larger scale while paying less money on average per unit of output, this is a phenomenon known as economies of scale.

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an increase in the labor force or capital stock is illustrated as a

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An increase in the labor force or capital stock is illustrated as a shift from A to B. An increase in the expected price of an important natural resource is indicated by a shift from B to A.

An improvement in technology is shown as a Shift from A to B. An increase in the expected future price level causes a shift from B to A.

Generation is the utility of expertise to reach sensible dreams in a specifiable and reproducible manner.[1] The phrase technology may also mean the fabricated from such an enterprise.[2]: 117 [3] the usage of generation is broadly typical in medicinal drugs, science, enterprise, communique, transportation, and each day lifestyles. Technology encompasses physical items like utensils or machines and intangible gear including software. Many technological improvements have brought about societal modifications. The earliest recognized era is the stone tool, used in the prehistoric generation,[4] followed by fire use, which contributed to the increase of the human mind and the improvement of language in the Ice Age.

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How does the Federal Reserve influence money?

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The federal funds rate the interest rate that banks charge one another for loans made in the overnight market for reserves is the primary tool the Fed uses to carry out monetary policy.

What is monetary policy?The Federal Reserve's actions and communications are considered to be part of monetary policy in the United States in order to support maximum employment, price stability, and moderate long-term interest rates, which are the three economic objectives that the Congress has directed the Federal Reserve to work toward.Reserve requirements, the discount rate, and open market operations have generally been the three instruments the Fed has used to conduct monetary policy.A nation's central bank's actions to regulate the money supply in order to maintain economic stability are referred to as its monetary policy. By employing instruments like interest rates, reserves, bonds, etc., policymakers can, for instance, manage the flow of money in order to boost GDP, employment, and price stability.

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when an existing firm creates a new venture or develops an innovation,it is said to be engaging in:acorporate emergence.btransformational leadership.cexceptional r

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When an existing firm creates a new venture or develops an innovation, it is said to be engaging incorporate entrepreneurship corporate entrepreneurship.

Corporate entrepreneurship empowers established businesses to innovate and take calculated risks. If it is successful, it uses corporate influence to open up new business opportunities. Some people may find the concept of corporate entrepreneurship to be incongruous, but those who are familiar with it realise how its benefits exceed its drawbacks.

Corporate entrepreneurship enables the core firm to gain from innovative concepts and tactics while the team implementing the new endeavour takes advantage of established corporate venture capital, brand recognition, and other resources that are usually inaccessible to startups.

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When would you see the greatest gain if there is a compensating differential built into your salary?.

Answers

In labor economics, the phrase "wage differential" is used to examine the relationship between wage rates and the unpleasantness, danger, or other unfavorable characteristics of a given profession.

A compensating differential, also known as a compensating salary differential or an equalizing difference, is the additional revenue necessary to persuade a person to accept a certain unfavorable job in comparison to alternative jobs that worker may perform.

In this case, the compensating differential would be negative, meaning that a given worker would be willing to accept a lower wage for an especially desirable job in comparison to other jobs. One can also speak of the compensating differential for an especially desirable job, or one that provides special benefits.

The concept of compensating differentials has been used to examine issues including the possibility of future unemployment, the possibility of harm or unsafe sex, the monetary value that employees place on their own lives, and the explanation of geographical wage differences.

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farris corporation, which has only one product, has provided the following data concerning its most recent month of operations: selling price $ 152 units in beginning inventory 0 units produced 9,450 units sold 9,050 units in ending inventory 400 variable costs per unit: direct materials $ 28 direct labor $ 70 variable manufacturing overhead $ 16 variable selling and administrative expense $ 20 fixed costs: fixed manufacturing overhead $ 141,750 fixed selling and administrative expense $ 9,800 what is the net operating income (loss) for the month under variable costing?

Answers

The net operating income for month under variable costing is $11,350.

What is net operating income?

The profitability of real estate investments that produce income is evaluated using a calculation known as net operating income (NOI). NOI is the total revenue from the asset less all operating costs that are deemed to be absolutely necessary.

On a property's income and cash flow statement, the term "net operating income" (NOI) refers to a before-tax figure that excludes loan principal and interest payments, capital expenses, depreciation, and amortization. The term "EBIT," which stands for "earnings before interest and taxes," is used when this metric is applied to other industries. Real estate experts use the valuation technique of net operating income to ascertain the exact value of their properties that generate an income. The income a property generates must be deducted from it in order to determine net operating income (NOI).

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fob shipping point means title passes when the seller ships the inventory, not when the buyer receives it.
a. true
b. false

Answers

A Fob shipping point means the title passes when the seller ships the inventory, not when the buyer receives it. true

A deliver is a huge watercraft that travels the sector's oceans and different sufficiently deep waterways, sporting cargo or passengers, or in the help of specialized missions, such as defense, research, and fishing. Ships are normally distinguished from boats, based on size, shape, load ability, and reason.

Ships have supported exploration, change, battle, migration, colonization, and technology. After the fifteenth century, new crops that had come from and to the Americas via EU seafarers substantially contributed to world populace growth. deliver delivery is chargeable for the biggest element of global trade.

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__________ refers to a work schedule that allows employees to work fewer days but with longer hours.

Answers

Compressed Work Schedules refers to a work schedule that allows employees to work fewer days but with longer hours.

A compressed work schedule allows a hand to work a traditional 35- 40 hour workweek in lower than five workdays. For illustration, a full-time hand could work four 10- hour days rather than five 8- hour days.

Flextime is an arrangement that allows a hand to alter the starting and/ or end time of her/ his workday. workers still work the same number of listed hours as they would under a traditional schedule. It's also a flexible work option for positions that don't fluently support remote work.

Full-Time. This is the “ traditional ” type of work schedule.

Part-Time.Fixed- Schedules.Flextime Schedules.Rotating Shifts.Split Shift.Seasonal.Schedule.

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when calculating interest and future value of an ordinary annuity, money is invested at what point in the year (period)?

Answers

When calculating the interest and future value of an ordinary annuity, money is invested at the end of the year.

A regular annuity is a series of payments that are made at the conclusion of each period. Calculating the amount of money that will be returned to an investor on a future date if the investor makes a series of payments previous to that date, assuming that the funds are invested at a specific interest rate, is a frequent financial planning concept.

Future value is the worth of a sum of money that will be paid on a specific future date. Since every payment is made at the end of a period, the formula for an average annuity's potential price refers to the value of a series of periodic payments on a given date in the future.

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