Annuities

It is a series of payments usually equal, made at equal intervals of time.

• sinking fund

• annuity

• bond

• loan

It is an annuity in which payment periods coincide with the interest conversion periods.

• compound

• simple

• general

• complex

It is an annuity in which payment periods do not coincide with the interest conversion periods.

• simple

• compound

• complex

• general

It is annuity in which payments are made at the end of the payment periods.

• annual

• ordinary

• annuity due

• deferred

It is an annuity in which payments are made at the beginning of the payment periods.

• early

• ordinary

• general

• annuity due

Mario deposits P800 at the end of each 3 months in a loan association which gives 8% compounded quarterly. What is P800 in the given situation?

• annual payment

• interest

• periodic payment

• loan payment

It is an annuity in which periodic payments run indefinitely.

• perplexity

• perpetuity

• perpetual

• infinity

At the end of each 3 months a company will deposit P75,000 for 10 years in a depreciation fund to provide a replacement of machinery at the end of 10 years. Find the total number of payments.

• 13

• 30

• 40

• 750,000

It is the time from the beginning of the first payment interval to the end of the last payment interval.

• period

• term

• contract

• perpetuity

It is an annuity in which the first payment is delayed for a period of time.

• postponed

• deferred

• derailed

• frozen