Exploring Annuity Due and Future Value Calculations

What is an annuity due?

• A type of annuity with payments at the end of each period

• A type of annuity with payments at the beginning of each period

• A type of loan repayment

• A type of insurance policy

What does the variable 'C' represent in the annuity formula?

• The future value of the annuity

• The total number of payments

• The regular deposit or payment amount

• The interest rate

Why is it important to convert the interest rate to a decimal in the formula?

• To avoid unrealistic results

• To increase the future value

• To simplify the calculation

• To decrease the number of payments

In the provided example, how much is deposited annually for college savings?

• $2,000

• $1,500

• $1,000

• $500

What is the interest rate used in the college savings example?

• 5%

• 4%

• 6%

• 3%

How many years are the deposits made in the example?

• 15 years

• 18 years

• 20 years

• 25 years

What is the final amount available for the child's education after 18 years?

• $29,539

• $28,132.38

• $30,000

• $25,000

How much total money was actually invested over the 18 years?

• $15,000

• $18,000

• $20,000

• $22,000

What is the purpose of using more decimal places in financial calculations?

• To round up the final result

• To make calculations easier

• To use fewer resources

• To ensure greater accuracy

What future topic is hinted at the end of the video?

• Insurance policies for families

• Calculating loans for automobiles

• Determining deposit amounts to reach a specific future value

• Investing in stocks and bonds