Q2M7

What is a deferred annuity?

• An annuity that has no payments

• An annuity that pays a lump sum at the end

• An annuity that starts payments after a certain period

• An annuity that starts payments immediately

What is the period of deferral in a deferred annuity?

• The time between the purchase and the first payment

• The total duration of the annuity

• The time until the first payment is made

• The time between payments

Which of the following is NOT a type of deferred annuity?

• Fixed annuity

• Indexed annuity

• Variable annuity

• Immediate annuity

What is the formula to calculate the present value of a deferred annuity?

• P = R * (1 + j)^n

• P = R / (1 + j)^n

• P = R * (1 - (1 + j)^-n) / j

• P = R * (1 - (1 + j)^-(k+n)) / j - R * (1 - (1 + j)^-k) / j

If a payment of ₱5,000.00 is made every month for 10 years starting 4 years from now, what is the period of deferral?

• 4 months

• 5 years

• 10 months

• 4 years

What is the interest rate used in the example of a deferred annuity for a loan of ₱400,000.00?

• 4%

• 3%

• 6%

• 5%

How many actual payments are made in a deferred annuity that pays ₱2,000.00 every 3 months for 8 years, starting after 2 years?

• 24

• 32

• 20

• 16

What is the present value of a deferred annuity of ₱1,500.00 every 3 months for 8 years that is deferred 3 years at 6% interest?

• ₱15,339.25

• ₱43,825.32

• ₱31,699.67

• ₱18,231.34

What is the total number of payments in a deferred annuity that pays ₱4,000.00 monthly for 2 years starting at the end of 3 months?

• 12

• 18

• 26

• 24

Which of the following statements is true about deferred annuities?

• They are only available for short terms.

• They have no interest rates.

• They can be used for retirement savings.

• They start payments immediately.