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Question
An annuity in which each payment is made at the end of period is called ______
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Solution
immediate annuity
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The person who receives annuity is called __________.
Fill in the blank :
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State whether the following is True or False :
Annuity contingent begins and ends on certain fixed dates.
State whether the following is True or False :
The future value of an annuity is the accumulated values of all installments.
State whether the following is True or False :
Sinking fund is set aside at the beginning of a business.
Solve the following :
Find the amount a company should set aside at the end of every year if it wants to buy a machine expected to cost ₹1,00,000 at the end of 4 years and interest rate is 5% p. a. compounded annually. [(1.05)4 = 1.21550625]
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Find the rate of interest compounded annually if an ordinary annuity of ₹20,000 per year amounts to ₹41,000 in 2 years.
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Multiple choice questions:
In an ordinary annuity, payments or receipts occur at ______
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The future value of an annuity is the accumulated values of all instalments
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