Which Statement Best Describes Annuities

question 4

Multiple Choice

Which statement best describes annuities?

• A)The cash flows for an ordinary (or deferred) annuity all occur at the beginning of the periods.
• B)If a series of unequal cash flows occurs at regular intervals, such as once a year, then the series is by definition an annuity.
• C)The cash flows for an annuity due must all occur at the ends of the periods.
• D)The cash flows for an annuity must all be equal, and they must occur at regular intervals, such as once a year or once a month.

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Definitions:

Environmentalism

A broad philosophy and social movement centered on the concern for the conservation and improvement of the environment.

Social Movement

An organized group action or series of actions aiming at achieving specific political or social goals, often outside of established institutions.

Gross Domestic Product

The total value of all goods and services produced within a country over a specific time period, commonly used to measure economic performance.