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Questions and Answers
What is the term (t) of an annuity?
What is the term (t) of an annuity?
- The amount of each payment
- The time between the first payment and last payment interval (correct)
- The time between successive payments
- The sum of future values of all the payments to be made during the entire term of the annuity
What is the present value (P) of an annuity?
What is the present value (P) of an annuity?
- The amount of each payment
- The sum of present values of all the payments to be made during the entire term of the annuity (correct)
- The sum of future values of all the payments to be made during the entire term of the annuity
- The time between successive payments
What is a General Ordinary Annuity?
What is a General Ordinary Annuity?
- The sum of future values of all the payments to be made during the entire term of the annuity
- An annuity where the payment interval is not the same as the interest compounding period
- The amount of each payment
- A general annuity in which the periodic payment is made at the end of the payment interval (correct)
What is a Regular or Periodic payment (R) in an annuity?
What is a Regular or Periodic payment (R) in an annuity?
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