Quiz Instructions
Homework Instructions
YOU HAVE UNLIMITED ATTEMPTS TO SUBMIT YOUR HOMEWORK: You may submit your
homework assignment as many times as you would like prior to the Canvas due date. You will
receive the highest score from all submitted attempts as your final score on this homework
assignment.
Answers: each question has formatting instructions for the final answer. You will not be awarded
credit for answers that do not conform to the formatting instructions; either by the Canvas system or
by the instructor after the due date has passed.
Partial credit: No partial credit will be awarded for incorrect answers.
Clarifications: You are responsible for understanding each test question prior to submitting an
answer. If you need to ask clarifying questions regarding the question itself or the answer formatting,
you must do so prior to the Canvas due date for this homework assignment. No extensions,
additional points, or any other special consideration will be given to students who fail to clarify their
understanding of the question or answer format prior to the Canvas due date.
Due Date: This assignment must be submitted on or prior to the due date and time listed on Canvas.
See the Canvas assignment details, the Canvas calendar, or Canvas to-do list for more information.
Late submissions: Late homework will not be accepted. The Canvas system will not accept late
submissions. The assignment will receive zero credit if it is not submitted on or before the canvas
due date and time. No extensions will be provided. The due date and time will be determined by the
Canvas internal clock no other time-keeping devices or methods will be considered.
Permissible resources: You are welcome to use any of the resources that have been made
available to you through this course or any external resources that you deem valuable. However, you
may not copy work from other students. You are also prohibited from using any materials that have
been illegally obtained without the instructor’s permission. Such materials include but are not limited
to: course material posted on commercial websites such as Course Hero or Quizlet, and course
material obtained from former students. Violations will result in an automatic score of zero for the
current assignment; additional action may be taken at the instructor’s discretion.
Collaboration: you are welcome to work with up to 3 other students to complete the homework.
Note that dividing the homework into sections and copying others’ work is not permitted under the
previous bullet point (Permissible resources). Each student is individually responsible for the work
they turn in. Copying any portion of another student’s work will result in zero credit.
Question 1 0.1 pts
Failure to respond to this question will result in a score of 0 on this assignment
I understand that this test and all of its content, including but not limited to question
text, any responses, numerical or otherwise, and any solutions if provided at a later
date, are copyright protected and protected under the University of Utah’s Student
Code of Conduct. Any reproduction and/or distribution of this document without the
permission of the instructor, Mike Anderson, is strictly prohibited. Any violation of this
policy will result in an automatic failing grade in this class as well as further
disciplinary action at the college and university level.
Consider an ordinary annuity, an annuity due, and a perpetuity. The annuity and
annuity due have the same terms, they start and end on the same date pay the same
cash flows etc. The perpetuity also starts on the same date and has the same
periodic cash flow structure. Order these securities from most to least valuable,
Assume the interest rate is always positive. (note: it would be most valuable for you
to do this without running numbers through a calculator)
Perpetuity, Annuity Due, and Ordinary Annuity
Annuity Due, Ordinary Annuity, and Perpetuity
Ordinary Annuity, Perpetuity, and Annuity Due
There is not enough information to answer the question
The value of each component (annuity, annuity due, single cash flow, etc.) must be found at
the same time period before values can be summed.
One simply applies the appropriate present value/future value formula and adds everything
up
The value of each individual cash flow can simply be summed no matter where those values
are in time.
The value can only be found if the cash flows are spread over different time periods and of
different payment sizes.