Which One of the Following Statements Concerning Annuities Is Correct

question 55

Multiple Choice

Which one of the following statements concerning annuities is correct?

• A)The present value of an annuity is equal to the cash flow amount divided by the discount rate.
• B)An annuity due has payments that occur at the beginning of each time period.
• C)The future value of an annuity decreases as the interest rate increases.
• D)If unspecified, you should assume an annuity is an annuity due.
• E)An annuity is an unending stream of equal payments occurring at equal intervals of time.

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Definitions:

Statistics

The science of collecting, analyzing, interpreting, and presenting data to make decisions or draw conclusions.

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A scale used for data collection, often in surveys, that ranges from 1 to 7, allowing respondents to indicate varying degrees of opinion or experience.

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A methodological approach used in statistics for collecting, analyzing, interpreting, and presenting data.

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A prepackaged meal that comes frozen and is designed to be heated in the oven or microwave before eating.