Q2M5

What do you call a sequence of payments made at equal time periods?

• Compound Interest

• Simple Interest

• Principal

• Annuity

What is a type of annuity where the payment interval is the same as the interest period?

• Simple Annuity

• General Annuity

• Simple Interest

• Ordinary Annuity

What is the type of annuity in which the payment interval is not the same as the interest period?

• Annuity Due

• Simple Annuity

• General Annuity

• Simple Interest

What is equal to the down payment plus the present value of the installment payments?

• Markup

• Downpayment

• Cash Price

• Markdown

Installment payment for an appliance at the end of each month with interest compounded monthly is an example of what type of annuity?

• Annuity Due

• General Annuity

• Simple Annuity

• Ordinary Annuity

What is the sum of present values of all the payments to be made during the entire term of the annuity?

• Periodic Payment

• Future Value of an Annuity

• Term of an Annuity

• Present Value of an Annuity

What is the time between the first payment interval and last payment interval?

• Present Value of an Annuity

• Periodic Payment

• Term of an Annuity

• Payment Interval

What is the amount of each payment?

• Future Value of an Annuity

• Periodic Payment

• Present Value of an Annuity

• Term of an Annuity

What is the time between successive payments?

• Time

• Term of an Annuity

• Payment Interval

• Periodic Payment

What is the future value of an annuity?

• Total accumulation of payments and interest earned

• Amount of each payment

• Principal required today for future payments

• Sum of present values of all payments