Annuity

What is referred to as a fixed sum of money paid to someone at regularintervals, subject to a fixed compound interest rate?

• compound interest

• simple interest

• annuity

• annuity certain

What type of annuity is illustrated when the interest conversionorcompounding period is equal or the same as the payment interval?

• annuity certain

• simple annuity

• annuity uncertain

• general annuity

What type of annuity is illustrated when the interest conversion or compounding period is unequal or not the same as the payment interval?

• annuity certain

• simple annuity

• annuity uncertain

• general annuity

Which is an example of annuities?

• interest

• rent

• bills

• savings

What do you call the type of annuity in which the payments are made at the end of each payment interval?

• annuity certain

• ordinary annuity

• contingent annuity

• general annuity

A payment made at the end of each month for money borrowed that charges 1.05% interest compounded quarterly. What type of annuities is being represented?

• simple ordinary annuity

• general ordinary annuity

• annuity due

• ordinary annuity

Which of the following situations is an example of a simple annuity?

• ₱ 2,000 deposited every six months for 2 years at 8%per year compounded monthly

• ₱ 2,000 deposited every month for 2 years at 8%per year compounded annually

• ₱ 2,000 deposited every month for 2 years at 8%per year compounded monthly

• ₱ 2,000 deposited every quarter for 2 years at 8%per year compounded monthly

Which of the following situations is an example of a general annuity?

• ₱ 5,000 deposited every month for 5 years at 8%per year compounded annually

• ₱ 5,000 deposited every six months for 5 years at 8%per year compounded semi-annually

• ₱ 5,000 deposited every three months for 5 years at 8%per year compounded quarterly

• ₱ 5,000 deposited every year for 5 years at 8%per year compounded annually

• A

• B

• C

• D

• 5 months

• 5 years

• 6 months

• 6 years