What is the name given to a series of multiple, equal payments when each payments will occur at the end of its time period and when the payments are expected to occur forever?
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Annuity:
A series of payments paid at regular intervals is known as an annuity. Regular savings account deposits, mortgage payments, insurance premiums, and pension payments are all examples of annuities. Annuities can be categorised based on how frequently they are paid.
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- Write an equation for determining the value of the series of end-of-period payments?An [Select] is a sequence of equal period payments. If payments are made at the end of each time interval, the annuity is called an [Select]An annuity is a method for calculating the future value of a single payment or a series of payments. What do you think?
- Annuity due is an annuity whose payment is due at the END of each period. TRUE OR FALSE?Time lines can be constructed for annuities where the payments occur at either the beginning or the end of the periods. Group of answer choices True FalseWhat is a deferred ordinary annuity? How does it differ from one that is not deferred? Draw a time line of each.
- Which of the following statements about annuities are true? Check all that apply. An ordinary annuity of equal time earns less interest than an annuity due. A perpetuity is a series of equal payments made at fixed intervals that continue infinitely and can be thought of as an infinite annuity. When equal payments are made at the end of each period for a certain time period, they are treated as ordinary annuities. When equal payments are made at the end of each period for a certain time period, they are treated as an annuity due.what will be interest paid at end of term?Growing annuities are a series of payments that grow at a rate.
- Using an annuity, you may calculate the present value of a single payment or a series of payments you will receive. Is this statement correct or incorrect?Which of the following changes would increase the present value of a future payment? (check all that apply) Decrease in the number of years until the future payment is received Increase in the interest rate Increase in the amount of the payment Decrease in the interest rate Increase in the number of years until the future payment is receivedWhat is the primary difference between an ordinary annuity and an annuity due? Group of answer choices ordinary annuity only relates to future values the timing of the periodic payment annuity due only relates to future values the interest rate