A. Ordinary annuity
B. Perpetuity
C. Annuity due
D. Deferred annuity
Related Mcqs:
- 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 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 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 - A person buys a piece of lot for P 100,000 downpayment and 10 deferred semi-annual payments of P 8,000 each, starting three years from now. What is the present value of the investment if the rate of interest is 12% compounded semi-annually ?
A. P 142,999.08
B. P 143,104.89
C. P 142,189.67
D. P 143,999.08 - A man loans P 187,400 from a bank with interest at 5% compounded annually. He agrees to pay his obligations by paying 8 equal annual payments, the first being due at the end of 10 years. Find the annual payments ?
A. P 43,600.10
B. P 43,489.47
C. P 43,263.91
D. P 43,763.20 - Which is NOT an essential element of an ordinary annuity ?
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. - What is the term for an annuity with a fixed time span ?
A. Ordinary annuity
B. Perpetuity
C. Annuity certain
D. Annuity due - 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 - 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
