Which type of annuity has equal payment intervals and interest conversion periods?

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Chapter 11

True/False

This activity contains 10 questions.

	An ordinary annuity is where the periodic payments are made at the end of the payment interval.    True  False

	The present value of an annuity is the algebraic summarization of the present value of single amounts of money (the PV=FV/(1+i)^n).    True  False

	The negative n portion of the present value annuity formula causes the formula to calculate the same number as using a positive n and then dividing the result into one ( (1+i)^-n = 1/(1+i)^n).    True  False

	The difference between the amount deposited into an account and the balance in the account is interest.    True  False

	If the interest rate is compounded quarterly and you are calculating the number of months. Multiply the number of periods by four.    True  False

	A simple annuity is an annuity in which the conversion period and the payment interval do not coincide.    True  False

	The future value of an annuity is represented by the formula FV=PV/(1+i)^n).    True  False

	The compounding or accumulation factor for annuities is the factor FV=PV/(1+i)^-n).    True  False

	When you multiply the interest rate per year by the compounding interval, the result is the periodic rate of interest.    True  False

	The cash value of a loan is equal to the down payment minus the present value of the periodic payments.    True  False

What are the 4 types of annuities?

Is annuity where the payment interval does not coincide with the interest conversion period?

When payments are equal the annuity is called?

What is simple annuity and general annuity?