✏️+🎥MCQ about annuities🟢

Responses

1. 

   Luke Achay 25 February 2024

   I have a language question. Why do we use an ordinary annuity calculation and assume we’re standing in Year 2 vs. calculating an annuity due calculation assuming we’re standing at the beginning of Year 3. “3 years from now” language sounds more like annuity due.

   1. 

      Deleted User 2 March 2024

      Hello Luke,

      Can you please mention which timeframe are you referring to ?

      Farhat Lectures Support Team

   2. 

      Adam Van Cleve 10 April 2024

      I had the same question at first but worked the problem both ways. You get the same answer either way. I guess it’s just a matter of which way makes the most sense in your head.

2. 

   Djokovic Nadal Avengers 8 December 2024

   Hi Professor,

   I have a quick question regarding Problem 2 at the 8-minute mark in the video. If the beginning of Year 1 is at zero, does that mean the end of Year 1 is marked at 1?

   Similarly, for subsequent years starting three years from now, would the end of Year 3 be exactly at 3, with Year 4 beginning immediately after that (represented by the dashed line above 3)? I guess if zero is the starting point then the end of year 3 will be on 3 but if the starting point is 1 then the end of year 3 is at 4 Beginning?

   Thank you for your clarification!

   1. 

      Maroun, CPA 11 December 2024

      Hello Djokovic Nadal,

      You are absolutely correct in your understanding. If the timeline starts at Year 0, then the end of Year 1 is marked at 1, and the subsequent years follow accordingly.
      I believe the issue lies with the wording of the question. It should have explicitly stated that the payments begin in the fourth year rather than just saying “three years from now,” which can lead to confusion. In the timeline depicted in the video, the first payment occurs at the end of Year 4.
      We will update the video, thank you for pointing this out!

3. 

   Cyndee Jackson 6 March 2026

   I can’t find a way to mark this video (MCQs on Time Value of Money) complete.

   1. 

      Maroun, CPA 9 March 2026

      Hello Cyndee,

      To mark this session as “complete,” you need to finish the attached quiz linked under the video. Once it is completed, the system will allow you to mark the session complete.

      Hope this helps!