Which of the following statements is CORRECT? The cash flows for an annuity may vary from period to period, but they must occur at regular intervals, such as once a year. The cash flows for an
Which of the following statements is CORRECT?
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The cash flows for an
annuity may vary from period to period, but they must occur at regular intervals, such as once a year. -
The cash flows for an annuity due must all occur at the beginning of the periods.
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The cash flows for an ordinary annuity occur at the beginning of the periods.
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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 an ordinary annuity.
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If a series of unequal cash flows occurs at regular intervals, such as once a year, then the series is by definition an annuity.
Annuities are series of regular payment over regular intervals.
Two types of annuities are one annuity due and ordinary annuity.
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