Annuity

What is the payment interval in Ged's smartphone installment example?

• monthly
• yearly
• quarterly
• weekly

What is an annuity?

• a sum of money that is paid in regular equal payments
• a one-time payment
• a type of investment
• a loan with variable payments

What is an Annuity Certain?

• an annuity payable for a definite duration
• a type of investment annuity
• an annuity with indefinite duration
• an annuity based on contingencies

Which annuity has no definite end date?

• Perpetuity
• Contingent Annuity
• Simple Annuity
• Annuity Certain

What type of annuity is defined by payment intervals that occur at the end of each period?

• Ordinary Annuity
• Contingent Annuity
• General Annuity
• Annuity Due

Tags

CCSS.HSF-LE.A.1C

What is the difference between Simple Annuity and General Annuity?

• Simple Annuity has the same compounding period as the payment interval while General Annuity does not
• They are the same
• Simple Annuity pays less interest
• General Annuity has shorter payment intervals

What defines a Contingent Annuity?

• its beginning or termination is dependent on some event
• there is no start date
• it pays perpetually
• it has fixed payments

Tags

CCSS.HSF.BF.A.2

What does Future Value of an Annuity represent?

• The sum of the future values of all the payments to be made during the entire term of the annuity
• The total payments made
• The sum of all present values
• Just the first payment

What does the term refer to in the context of an annuity?

• the time from the beginning of the first payment interval to the end of the last payment interval
• the total amount paid
• the amount paid each time
• the interest rate

Tags

CCSS.HSA.SSE.B.4

Which of the following is an example of a contingent annuity?

• insurance and pension payments
• monthly salary
• fixed deposits
• installment payments

Tags

CCSS.HSF-LE.A.1C