Which of the Following Is a Description of How the Annuity

question 4

Multiple Choice

Which of the following is a description of how the annuity exclusion ratio is calculated for an annuity paid over a fixed period?

• A)The expected return is divided by the number of payments.
• B)The original investment is divided by the prevailing interest rate.
• C)The original investment is divided by the number of payments.
• D)The expected return is divided by the prevailing interest rate.
• E)None of these choices are correct.