An Ordinary Annuity Is Best Defined by Which One of the Following

question 16

Multiple Choice

An ordinary annuity is best defined by which one of the following?

• A)increasing payments paid for a definitive period of time
• B)increasing payments paid forever
• C)equal payments paid at regular intervals over a stated time period
• D)equal payments paid at regular intervals of time on an ongoing basis
• E)unequal payments that occur at set intervals for a limited period of time

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Definitions:

Market Price

The market price at which you can currently buy or sell an asset or service.

Cash Deal

A transaction where the payment for a good, service, or acquisition is made entirely with cash instead of financing or stock exchanges.

Fair Market Value

The price at which an asset would trade in a competitive auction setting, reflecting the value of an asset in the open market.

Fixed Assets

Long-term tangible assets used in the operations of a business and not expected to be converted to cash within a year.