Indicate Which of the Following Is True About Annuities

question 95

Multiple Choice

Indicate which of the following is true about annuities.

• A) An annuity due is a payment paid or received at the beginning of each period, that increases by an equal amount each period.
• B) An ordinary annuity is an equal payment paid or received at the beginning of each period.
• C) An ordinary annuity is an equal payment paid or received at the end of each period, that increases by an equal amount each period.
• D) An annuity due is an equal payment paid or received at the beginning of each period.

---

Definitions:

Initial Value

The initial value is the beginning amount before any adjustments, such as depreciation or appreciation, and serves as a benchmark for measuring change over time.

Percent Change

A mathematical calculation that illustrates how much something has increased or decreased in percentage terms over a specific period.

Ticket Prices

The amount charged for admission to an event or access to a service.

Initial Value

The starting monetary or numerical value of an asset or investment before any gains, losses, or other changes.