Which of the Following Is False

question 126

Multiple Choice

Which of the following is false?

• A) The future value of a deferred annuity is the same as the future value of an annuity not deferred.
• B) A deferred annuity is an annuity in which the rents begin after a specified number of periods.
• C) To compute the present value of a deferred annuity, we compute the present value of an ordinary annuity of 1 for the entire period and subtract the present value of the rents which were not received during the deferral period.
• D) If the first rent is received at the end of the sixth period, it means the ordinary annuity is deferred for six periods.

---

Definitions:

Equipment

Tools or machinery that are necessary for a particular kind of work or activity, often utilized in various fields such as construction, manufacturing, and medical.

Materials

The physical substances from which objects are made, often used in the context of manufacturing and construction.

Labor

The human effort, both physical and mental, used in the production of goods and services.

Service Business

A type of business that provides intangible products, such as expertise or time, to customers.