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:

Emotional Support

Assistance provided through empathy, concern, encouragement, and companionship that helps individuals cope with stress or emotional challenges.

Perfect

Describes a state or condition that is flawlessly excellent, complete, and lacking in no essential detail.

Self-Confident

Possessing assurance in one’s own abilities, qualities, and judgment, often leading to greater assertiveness and resilience.

Conceited

Having or showing an excessively high opinion of oneself; overly proud or self-important.