Which One of the Following Statements Is True Concerning Annuities

question 18

Multiple Choice

Which one of the following statements is true concerning annuities?

• A)All else equal, an ordinary annuity is more valuable than an annuity due.
• B)All else equal, a decrease in the number of payments increases the future value of an annuity due.
• C)An annuity with payments at the beginning of each period is called an ordinary annuity.
• D)All else equal, an increase in the discount rate decreases the present value and increases the future value of an annuity.
• E)All else equal, an increase in the number of annuity payments decreases the present value and increases the future value of an annuity.

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Definitions:

SPSS Syntax

The set of commands and code used in the SPSS (Statistical Package for the Social Sciences) program for data analysis.

Big Data

Large and complex data sets that traditional data processing application software is inadequate to deal with.

Programming Language

A formal language comprising a set of instructions used to produce various kinds of output, including software programs, that computers can execute or interpret.

Actual Rate

The real interest rate or return on an investment, taking into account inflation.