PRC-2 · Chapter 2 · Question 33 of 45
A series of equal periodic payments made at regular intervals is known as a/an:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Annuity
Explanation
Annuities involve regular payments like insurance premiums, pension contributions, or monthly loan installments.
More Coordinate System and Its Application MCQs
- Q35What is the effective annual rate (EAR) if the nominal rate is 12% compounded monthly?
- Q36An annuity where the payments are made at the *beginning* of each period is called a/an:
- Q37What happens to the Present Value of a future payment as the discount rate (interest rate) increases?
- Q38How long will it take for a sum to double itself at 10% Simple Interest per annum?
- Q39The process of systematically paying off a debt (like a mortgage) with regular payments over time is called: