an annuity due is one where payments are made:\n a) at the end of each period\n b) at the beginning of each…

an annuity due is one where payments are made:\n a) at the end of each period\n b) at the beginning of each period\n c) after deferment\n d) randomly\n\nthe term of an annuity refers to:\n a) payment size\n b) interest rate\n c) number of payment periods\n d) type of compounding\n\nthe present value of an annuity is:\n a) the sum of all payments\n b) the value today of future payments\n c) the accumulated value\n d) the interest earned\n\nthe future value of an annuity is:\n a) always less than present value\n b) the total value of all deposits plus interest\n c) only the sum of deposits\n d) independent of interest

an annuity due is one where payments are made:\n a) at the end of each period\n b) at the beginning of each period\n c) after deferment\n d) randomly\n\nthe term of an annuity refers to:\n a) payment size\n b) interest rate\n c) number of payment periods\n d) type of compounding\n\nthe present value of an annuity is:\n a) the sum of all payments\n b) the value today of future payments\n c) the accumulated value\n d) the interest earned\n\nthe future value of an annuity is:\n a) always less than present value\n b) the total value of all deposits plus interest\n c) only the sum of deposits\n d) independent of interest

Answer

Brief Explanations:

  • An annuity - due has payments made at the start of each period. Regular annuities have payments at the end.
  • The term of an annuity is the number of payment periods over which the annuity exists.
  • The present - value of an annuity is the value today of a series of future payments, discounted at an appropriate interest rate.
  • The future value of an annuity is the total value of all deposits plus the interest earned over the life of the annuity.

Answer:

  1. b) At the beginning of each period
  2. c) Number of payment periods
  3. b) The value today of future payments
  4. b) The total value of all deposits plus interest