- 1 Marks
QTB – Nov 2014 – L1 – SA – Q18 – Mathematics of Business Finance
Identifies the correct definition of an annuity.
Question
An annuity is defined as the:
A. Specific amount of money saved at regular intervals meant to be used in funding some future financial commitments
B. Lump sum investment designed to produce a sequence of equal regular payments over time
C. Specific amount of money received at intervals which is not necessarily equal to fund some future financial commitments
D. Lump sum investment designed to produce a sequence of unequal but regular payments over time
E. Repayment of interest-bearing debts through a series of equal regular payments until the debt is entirely paid off with the accrued interest
Find Related Questions by Tags, levels, etc.
- Tags: Annuity, Financial Commitments, Payments
- Level: Level 1
- Topic: Mathematics of Business Finance
- Series: NOV 2015
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