Related Questions

In a joint life annuity, what would happen to annuity payment if the spouse is to predecease the annuitant?
A Annuity would continue
B Annuity would cease
C A & B correct
D None of the above
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
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 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 that does not have a fixed time span but continues indefinitely or forever?
A Ordinary annuity
B Perpetuity
C Annuity due
D Deferred annuity
Which annuity requires payment to be made at the end of each perid?
A Annuity due
B Ordinary annuity
C Growing annuity
D Perpetuity
The annuity which refers to a debt payment for recovering the initial amount or capital in equal periodical payments, is known as;
A Present Worth Annuity
B Sinking fund annuity
C Compound annuity
D Capital recovery annuity
Amount of annuity payable is inversely related to which of the following?
A Principal sum of money
B Investment period
C Rate of return
D Duration of annuity payments
Which of the following statements best describes an ordinary annuity?
A Equal cash flows at equal time intervals forever
B Equal cash flows at equal time intervals for a specific time period
C Lumpy cash flows at equal time intervals forever
D Lumpy cash flows at equal time intervals for a specific time period
A pension scheme in which the employer manages fund through a trust and pays pension thro purchase of an annuity from a life insurance company is called
A Uninsured pension scheme
B Insured Pension scheme
C Both A & B
D None of the above

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