Annuities Quiz

What is an annuity?

• A series of unequal payments

• A loan with interest

• A series of equal periodic payments

• A one-time payment

Tags

CCSS.HSA.SSE.B.4

What type of annuity has payments that coincide with the interest conversion period?

• General Annuity

• Simple Annuity

• Ordinary Annuity

• Contingent Annuity

Tags

CCSS.HSF-LE.A.1C

Which type of annuity has no fixed terms?

• Annuity Due

• Contingent Annuity

• Deferred Annuity

• Annuity Certain

What is the term for the sum of all payments at the end of the term?

• Total Interest

• Present Value

• Amount of the Annuity

• Future Value

In an ordinary annuity, when are payments made?

• At random intervals

• At the end of each interval

• Only once at the end

• At the beginning of each interval

Tags

CCSS.HSF-LE.A.1C

What is the formula for the present value of an annuity?

• A = S(1 + i)^n

• A = R(1 + i)^n

• A = R(1 - (1 + i)^-n)/i

• A = S(1 + i)^-n

What is an annuity due?

• Payments made at the end of each interval

• Payments made at the beginning of each interval

• Payments made only once

• Payments made at random times

How is the present value of annuity dues calculated?

• By dividing the total payments by the number of intervals

• By subtracting the first payment from the total amount

• By multiplying the total payments by the interest rate

• By adding the first payment to the present value of ordinary annuity

What defines a deferred annuity?

• Payments start immediately

• Payments start after a specified time

• Payments are made at random intervals

• Payments are made only once

What is the formula for the amount of an annuity where the first payment is deferred?

• S = R(1 - (1 + i)^-h)/i

• S = R(1 + i)^(h+n)

• S = R(1 - (1 + i)^-(h+n))/i

• S = R(1 + i)^(h+n) - R(1 + ih - 1)

Tags

CCSS.HSA.SSE.B.4