The Portion of the Principal and Interest of an Annuity

question 127

Multiple Choice

The portion of the principal and interest of an annuity that has not been paid to the annuitant prior to death is the ____ benefit.

• A)principal
• B)distribution
• C)survivorship
• D)installment
• E)accumulated

---

Definitions:

Option To Wait

The flexibility to delay an investment or project to gather more information or wait for favorable conditions.

Discount Rate

The discount rate applied in DCF analysis to calculate the current worth of anticipated future cash flows.

Option To Wait

A strategic decision opportunity in investment where the investor can delay an investment decision to gather more information or for conditions to improve.

Soft Capital Rationing

Internal constraints imposed by a company's management on the funds allocated for new investments, often due to budgetary constraints.