A. The amounts of all payments are equal.
B. The payments are made at equal interval of time.
C. The first payment is made at the beginning of the first period.
D. Compound interest is paid on all amounts in the annuity.
Related Mcqs:
- What is the type of annuity that does not have a fixed time span but continues indefinitely or forever ?
A. Ordinary annuity
B. Perpetuity
C. Annuity due
D. Deferred annuity - What is the type of annuity where the first payment does not begin until some later date in the cash flow ?
A. Ordinary annuity
B. Perpetuity
C. Annuity due
D. Deferred annuity - What is the type of annuity where the payments are made at the beginning of the each period starting from the first period ?
A. Ordinary annuity
B. Perpetuity
C. Annuity due
D. Deferred annuity - What is the type of annuity where the payments are made at the end of each period starting from the first period ?
A. Ordinary annuity
B. Perpetuity
C. Annuity due
D. Deferred annuity - What is the term for an annuity with a fixed time span ?
A. Ordinary annuity
B. Perpetuity
C. Annuity certain
D. Annuity due - What is the present worth of a P500 annuity starting at the end of the third year and continuing to the end of the fourth year, if the annual interest rate is 10 % ?
A. P 727.17
B. P 717.17
C. P 714.71
D. P 731.17 - What annuity is required over 12 years to equate with a future amount of P 20,000? Assume i= 6% annually ?
A. P 1,290.34
B. P 1,185.54
C. P 1,107.34
D. P 1,205.74 - What is the present worth of a year annuity paying P 3,000.00 at the end of each year, with interest at 8% compounded annually ?
A. P 7,654.04
B. P 7,731.29
C. P 7,420.89
D. P 7,590.12 - A mathematical expression also known as the present value of annuity of one is called ____________________?
A. Load factor
B. Demand factor
C. Sinking fund factor
D. Present worth factor - What stock represents ownership and enjoys certain preferences than ordinary stock ?
A. Authorized stock
B. Preferred stock
C. Incorporator’s stock
D. Presidential stock
