5 Questions
Which of the following is an example of an annuity?
Weekly wages
What is the difference between Annuity Certain and Annuity Uncertain?
The payment termination
What is a Simple Annuity?
An annuity with a fixed payment interval
Which type of annuity is dependent on some event that cannot be determined accurately?
Annuity Uncertain
What is the transaction of an ordinary annuity?
Payment/deposit begin and end on a definite or fixed date
Study Notes
Annuity Examples and Types
- A subscription to a monthly streaming service is an example of an annuity, as it involves a series of equal payments made at equal intervals.
Annuity Certain vs. Annuity Uncertain
- Annuity Certain: An annuity whose total number of payments is fixed and known in advance.
- Annuity Uncertain: An annuity whose total number of payments is not fixed and is dependent on some event, such as the death of a person.
Simple Annuity
- A Simple Annuity is an annuity in which the payments are made at the end of each period.
Contingent Annuity
- A Contingent Annuity is a type of annuity that is dependent on some event that cannot be determined accurately, such as the death of a person.
Ordinary Annuity
- In an ordinary annuity, the transaction involves a series of payments made at equal intervals, with the first payment made at the end of the period.
Test your knowledge on annuities and their different types in this quiz by Mapua University's Department of Mathematics. Learn about simple annuities, ordinary annuities, and more.
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