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.

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Definitions:

Sampling Variation

The variability of sample statistics from sample to sample due to random selection in the sampling process.

Null Hypotheses

A statistical hypothesis that assumes no significant difference or effect exists within a set of observations.

Alternative Hypotheses

In hypothesis testing, statements that are accepted if the evidence provides sufficient support for them being true, as opposed to the null hypothesis.

Low Income Housing

Housing units that are affordable for individuals or families with low yearly income, often supported by government programs.