MBF 100/101: Identifying Annuities

MBF 100/101: Identifying Annuities

12th Grade - University

9 Qs

quiz-placeholder

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MBF 100/101: Identifying Annuities

MBF 100/101: Identifying Annuities

Assessment

Quiz

Business

12th Grade - University

Medium

Created by

SLG Group

Used 321+ times

FREE Resource

9 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

Which key words show if an annuity is Simple or General?

If payments are made at the beginning of the period it is simple, if payments are at the end it is General

If payments per year (pp) are equal to compounding per year (cp) it is Simple, otherwise it is General.

(Ie, cp=pp is Simple, cp =/= pp is General.

If Payments are being made it is Simple, if there are no payments being made it is General.

There's no way of knowing, math is a mystery.

2.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

How do we know we are looking at an Annuity question?

You are making regular payments

Interest is compounded

i2=i

A number has been changed by a certain %

3.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

What key words tell us if an annuity is Ordinary or Due?

If payments are made at the end of a period it is Ordinary, if they are at the beginning it is annuity Due.

If payments per year (pp) are equal to compounding per year (cp) it is Ordinary, if they are not equal it is Due.

(ie, cp=pp is Ordinary, cp=/=pp is Due).

If you are making regular payments it is Ordinary, if there are not payments it is Due

Flip a coin and hope for the best

4.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

If you invest $100 at the end of every quarter, what kind of annuity are you looking at?

General

Simple

Ordinary

Due

5.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

If a pension plan pays you $30,000 at the beginning of every year, what kind of annuity is it?

Simple

General

Ordinary

Due

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If you invest every month at a rate 1.4% every month, what kind of annuity is it?

Simple

General

Ordinary

Due

7.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

If you win the lottery and receive $50,000 every month at a rate of 0.2% compounded every year, what kind of annuity is it?

Simple

General

Ordinary

Due

8.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

You invest $300 into your bank every month for 3 years. It grows at a rate of 2% compounded every month. What kind of annuity is this?

Simple Ordinary Annuity

Simple Annuity Due

General Ordinary Annuity

General Annuity Due

9.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

If you receive $1500 interest revenue at the end of every quarter and interest is 6% compounded every quarter, what kind of annuity is it?

Simple Ordinary Annuity

Simple Annuity Due

General Ordinary Annuity

General Annuity Due