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Answer TRUE if the statement is correct, otherwise FALSE if not.
1. Term of the annuity refers to the time for the beginning of the term to the end of the last one
TRUE
False
2. The amount of annuity is the product of the compound amounts of each payment
TRUE
False
3. Payment Interval is the amount between each payment
TRUE
False
4. Annuity is a series of not equal periodic payments or deposits where the interest in which is compounded. It may also be used to discharged liabilities.
TRUE
False
5. Simple Annuity is an annuity where the payment interval coincides with the interests conversion period.
TRUE
False
6. Death is an example of simple annuity.
TRUE
False
7. Contingent Annuity is an annuity with no fixed terms.
TRUE
False
8. Annuity Due is an annuity where payments are made at the beginning of each month intervals.
TRUE
False
9. Insurance payments, health care premiums, and school bus fees are example of simple annuity.
TRUE
False
10. Ordinary Annuity refers to a sequence of periodic payments which are thought of as occurring at the ends of corresponding payment intervals
TRUE
False
Sagot :
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