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Which of the following statements aboutannuities are t rue ? Check allthat apply

A When equal payments are made at theend of each period for a certain time period, they are treated asordinary annuities.
B An ordinary annuity of equal time earns less interest than anannuity due.
C When equal payments are made at the end of each period for acertain time period, they are treated as an annuity due.
D A perpetuity is a series of equal payments made at fixedintervals that continue infinitely and can be thought of as aninfinite annuity.

Which of the following is an example ofan annuity?

A A lump-sum payment made to a life insurance companythat promises to make a series of equal payments later for someperiod of time
B An investment in a certificate of deposit (CD)

Luana loves shoppingfor clothes, but considering the state of the economy, she hasdecided to start saving. At the end of each year, she will deposit$710 in her local bank, which pays her 13% annual interest. Luanadecides that she will continue to do this for the nextfive years. Luana's savings are an example of an annuity.How much will she save by the end of fiveyears?

0

$4,600.99

0

$3,910.84

0

$5,199. 12

0

$2,497.23

If Luana deposits the money at thebeginning of every year and everything else remains thesame, she will save____________ by the end of fiveyears.

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Collen Von
Collen VonLv2
28 Sep 2019

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