Annuity and Interest Quiz

What do you call the type of annuity in which payments extend over an indefinite length of time.

• Annuity certain

• contingent annuity

• ordinary annuity

• general annuity

It refers to the sum of present values of all the payments to be made during the entire term of the annuity.

• Future Value of an annuity

• Present Value of an annuity

• regular payment

• term of an annuity

In formula of future value and present value of simple and general annuity what R represents?

• rate

• regular payment

• interest rate per period

• number of payment

It is a time between the purchase of an annuity and the start of payment for the deferred annuity.

• period of deferral

• term in years

• rate

• regular payment

Rica invested the amount of ₱50,000.00 for 5 years at 6% compounded quarterly. What is the value of n?

• 20

• 15

• 10

• 5

It is a term that refers to payments received (cash inflows) or payments or deposit made (cash outflows).

• Cash flow

• Focal date

• Fair market value

• Time diagram

It is the amount paid or earned for the use of money.

• interest

• loan

• principal

• rate

It is the interest computed on the principal and on the accumulated past interest.

• compound interest

• prime interest

• simple interest

• termination value

It is an amount after 't' years that the lender receives from the borrower on the maturity date.

• term

• rate of interest

• repayment value

• future value

A person (or institution) who invests the money or makes the funds available.

• broker

• handler

• lender

• manager