Which of the Following Is a Description of How the Annuity

question 53

Multiple Choice

Which of the following is a description of how the annuity exclusion ratio is calculated for an annuity paid over a fixed period?

• A) The expected return is divided by the number of payments.
• B) The original investment is divided by the prevailing interest rate.
• C) The original investment is divided by the number of payments.
• D) The expected return is divided by the prevailing interest rate.
• E) None of these

---

Definitions:

Forestall

To prevent, hinder, or obstruct an event, action, or outcome by taking advanced or anticipatory measures.

Objections

Concerns, hesitations, or reasons a potential customer has for not making a purchase, which a salesperson aims to overcome through objection handling techniques.

Setting A Condition

Establishing a specific requirement or criteria that must be met in a given situation or agreement.

Prospects

Individuals or businesses that are potential customers and have been identified as likely to purchase.