MBF-4E-11-01-Deferred_Annuities

6 [Question text] An ordinary annuity is best defined as __________________. Select one: A. increasing payments paid forever B. equal payments paid at the beginning of regular intervals for a limited time period C. equal payments paid at the end of regular intervals over a stated time period D. increasing payments paid for a definitive period of time

Question 1 Saved An annuity with periodic payments made at the end of each payment period is called: A) ordinary Oi general Cannuity due O simple Onone of the above

An annuity due is an annuity for which:   Question 10 options:   A)  the payments are made to repay a loan   B)  the payments are made at the beginning of each payment period   C)  the payments continue forever   D)  the payments are made at the end of each payment period   E)  the payment period is not the same as the conversion period

Question 15 Annuities where the payments occur at the beginning of cach time period are called ahereas refer to annuity streams with payments occurring at the end ofexhine period O ordinary for regular) annuities annuities due O annuities due, ordinary lor regulari annutles OLte anouties straight anuities ordinany annuities carly annuities straight annuities, late annuities

A series of equal periodic payments in which the first payment is made one compounding period after the date of the contract is ________. Group of answer choices a deferred annuity a compound annuity an ordinary annuity an annuity due

The deferral period lasts from the original deposit date (lump sum) up until the start of the term for the annuity. True 6. False

A series of equal payments occurring at equal interval of time, known as. Ans: ____________ A type of annuity where the first payment is made at the end of the first period. Ans: ___________________ A type of annuity whose sum is infinite. Ans: _____________ A type of annuity where the first payment is made at the beginning of the first period. Ans: ______________ A type of annuity where the first payment is made later after the end of the first period. Ans: ___________________

→ Question 1 A usually involves some constant periodic payment which pays for both interest and principle over some specified period of time. Question 2 A involves some constant periodic payment which pays for interest over some period of time and a lump sum final payment at the end of the term .

An [Select] is a sequence of equal period payments. If payments are made at the end of each time interval, the annuity is called an [Select]

What is the primary difference between an ordinary annuity and an annuity due? Group of answer choices ordinary annuity only relates to future values the timing of the periodic payment annuity due only relates to future values the interest rate

An annuity with payments that occur at the beginning of each period is known as a ○ annuity due ordinary annuity deferred annuity discounted annuity immediate annuity

With a deferred ordinary annuity, the first payment was made one or more periods prior. the first payment begins one or more periods later. the last payment is made first. the first payment is made last.

The difference between an ordinary annuity and a annuity due is: A ordinary annuity is when payments are made at the beginning of each period, while for a annuity due the payments are made at the end of each period. An annuity due is an annuity where the loan is repaid in one lump sum at the end of the annuity, while for an ordinary annuity regular payments are made throughout the period of the annuity. An annuity due is when interest is compounded at the same time as payments are made, while for a ordinary annuity the interest and payment periods are different. A ordinary annuity is when payments are made at the end of each period, while for a annuity due the payments are made at the beginning of each period. An ordinary annuity is when interest is compounded at the same time as payments are made, while for a annuity due the interest and payment periods are different.

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Problem 5 Given the following spot rates and forward rates (in percents) for the effective years: Rate/Year Spot Forward 4. 5 8. 9 4. 10 7. 7. 8 6. 3 2 4. 8. 8 4 Find the present value factor of an annuity immediate under both schemes. (These figures may not match because the rates aren't designed to match.)

Multiple Choice Question   Which of the following is the formula for the present value of a growing annuity? (C is the payment to occur at the end of the first period, r is the interest rate, g is the rate of growth per period expressed as a percentage, and t is the number of periods for the annuity.) Multiple choice question. PV = C(r−g)C(r−g) (1−((1−g)(1−r))t)1−(1-g)(1-r)t PV = C(r−g)C(r−g) (1−((1+g)(1+r))t)1−(1+g)(1+r)t PV = C(r−g)C(r−g) (1−((1−g)(1+r))t)1−(1-g)(1+r)t PV = C(r−g)C(r−g) (1−((1+g)(1−r))t)

In order to compute the present value of an annuity, it is necessary to know the 1. discount rate. 2. number of discount periods and the amount of the periodic payments or receipts. ○ 1 O something in addition to 1 and 2 O both 1 and 2 ○ 2

1.     Which statement is FALSE?   A. Future value annuity is an example of annuity. B. A perpetuity is an annuity that has maturity period. C. An annuity is a series of equal payment made for a specified number of years. D. Ordinary annuity is an annuity in which the cash flows occur at the end of each period.