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Question
State whether the following is True or False:
Annuity certain begins on a fixed date and ends when an event happens.
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Solution
This statement is false.
Explanation:
An annuity certain starts on a fixed date and ends on a fixed date, because it is payable for a predetermined period of time. It does not depend on any uncertain event (like death); such dependence is a feature of a contingent annuity.
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