The First Cash Flow in the Future Value of an Annuity

question 19

Multiple Choice

The first cash flow in the future value of an annuity occurs when?

• A)At the start of the first period.
• B)At the maturity date of the loan.
• C)When interest is collected.
• D)At the end of the first period.

---

Definitions:

Straight Line

In finance, often refers to a method of depreciation where an asset's value decreases evenly over its useful life.

Depreciated

The reduction in an asset's worth over a period, frequently as a result of usage or becoming outdated.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a particular point in time, providing insight into its financial health.

Earnings Before

A financial metric that typically specifies a certain earnings figure before deductions are made, such as Earnings Before Interest and Taxes (EBIT).