Calculate the Duration of a Ten-Year Level Annuity with Annual

question 18

Multiple Choice

Calculate the duration of a ten-year level annuity with annual yield of 9%.

• A) 9.00 years
• B) 10.00 years
• C) 12.11 years
• D) 4.87 years.
• E) 4.79 years.

---

Definitions:

Accounts Receivable

The outstanding invoices a company has or the money the company is owed from its clients.

Voucher

A document or code that entitles the holder to a discount or that may be exchanged for goods or services.

Installments

Payments divided into smaller, manageable parts over a set period, allowing for the purchase of goods or repayment of loans.

Truth in Lending Act

A U.S. federal law designed to promote informed use of consumer credit by requiring disclosures about its terms and cost.