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:

Soviet Zone

The area of Eastern Europe that was under the influence and control of the Soviet Union after World War II, including parts of Germany, Poland, and other countries.

Josip Broz

Commonly known as Tito, a Yugoslav communist revolutionary and statesman who served as the Prime Minister and later President of Yugoslavia.

Communist Government

A form of government where the state owns and controls the major means of production and there is no private property, aiming to achieve a classless society.

Yugoslavia

A country in Southeast Europe that existed from the end of World War I until it broke up into several independent countries in the 1990s due to a series of conflicts.