Which of the following statements is CORRECT?
A. The cash flows for an ordinary (or deferred) annuity all occur at the beginning of the periods.
B. If a series of unequal cash flows occurs at regular intervals, such as once a year, then the series is by definition an annuity.
C. The cash flows for an annuity due must all occur at the ends of the periods.
D. The cash flows for an annuity must all be equal, and they must occur at regular intervals, such as once a year or once a month.
E. If some cash flows occur at the beginning of the periods while others occur at the ends, then we have what the textbook defines as a variable annuity.
Answer: D
You might also like to view...
Adaptive selling describes the salesperson's ability to adjust and modify their behaviors to better align with their customers' needs.
Answer the following statement true (T) or false (F)
Major appliance retail stores such as Sears sell appliances and also offer extended warranties and service what they sell. This is an example of ______.
a. intangible products b. tangible products c. mixed products d. semitangible products
By promoting the fact that "orange juice is not just for breakfast anymore," the Florida Orange Growers Association attempted to stimulate
A. primary demand. B. secondary demand. C. competition. D. comparison of orange juices. E. demand elasticity.
Sensitivity testing involves ignoring missing data unless knowing a value might significantly change results
Indicate whether the statement is true or false