Which of the Following Is Not Necessary to Know in Computing

question 33

Multiple Choice

Which of the following is not necessary to know in computing the future value of an annuity?

• A)Amount of the periodic payments
• B)Interest rate
• C)Number of compounding periods
• D)Year the payments begin

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Definitions:

Preferred Stock

A class of ownership in a corporation with a specified dividend that is paid before any dividends are paid to common stock holders and typically with no voting rights.

Common Stock

Type of security that signifies ownership in a corporation and represents a claim on part of the company's profits and assets.

Dividends

Disbursements issued by a company to its shareholders, representing a share of the company's earnings distributed to its stockholders.

Cash Dividend

A cash dividend refers to the distribution of a portion of a company's profits to its shareholders as cash.