Tag: insurance and annuity
Questions Related to insurance and annuity
Amount of money today which is equal to series of payments in future
-
nominal value of annuity
-
sinking value of annuity
-
present value of annuity
-
future value of annuity
By definition,
Annuity, where the payments start after specified no. of periods, is known as
-
Immediate Annuity
-
Deferred annuity
-
Contingent annuity
-
Perpetual annuity
An annuity which begins payments only after a period is a deferred annuity
Annuity, where the payments start after specified no. of periods, is known as Deferred annuity.
Which of the following is an example of annuity contingent ?
-
Car Loan
-
House Loan
-
Daughter's Marriage
-
All of the above
Security payment type in which payments are made at equal intervals of time and every payment amount is same is classified as _______________.
-
fixed interval investment
-
fixed payment investment
-
annuity
-
lump sum amount
An annuity is a series of equal payments in equal time periods. Usually, the time period is $1$ year, which is why it is called an annuity, but the time period can be shorter, or even longer. These equal payments are called the periodic rent. The amount of the annuity is the sum of all payments.
such security payment type in which payments are made at equal intervals of time and every payment amount is same is classified as annuity.
If payment of security is paid as $ $100$ at end of year for three years, it is an example of
-
fixed payment investment
-
lump sum amount
-
fixed interval investment
-
annuity
The amount of the annuity is the sum of all payments.
such security payment type in which payments are made at equal intervals of time and every payment amount is same is classified as annuity.
If payment of security is paid as $100 at end of year for three years, it is an example of annuity.
What is true about Annuity Due ?
-
It is an annuity in which payments are made at the end of each payment period.
-
It is an annuity in which payments are made at the beginning of each payment period.
-
It is an annuity in which payments are made in the middle of each payment period.
-
None of the above
$\Rightarrow$ True statement about Annuity Due is,
Which of the following is true about Annuity Contingent ?
-
It is made till the happening of an event.
-
It is made for fixed number of intervals of time.
-
Loans for home comes under it
-
All of the above
$\Rightarrow$ True statement about Annuity contingent is $It\,is\,made\,till\,the\,happening\,of\,an\,event.$
Which of the following is not an example of annuity contingent ?
-
Daughter's Marriage Loan
-
Life Insurance Plans
-
Mortgage
-
All of the above
The Future amount of annuity, $(M)$, can be found by
-
$ M=\dfrac{A}{r} \times \left[(1+r)^{n}+1\right] $
-
$ M=\dfrac{r}{A} \times \left[(1+r)^{n}-1\right] $
-
$ M=\dfrac{A}{r} \times \left[(1+r)^{n}-1\right] $
-
$ M=\dfrac{r}{A} \times \left[(1+r)^{n}+1\right] $
The future amount of annuity (M) can be founded by the formula
Where $A$ is amount and $r$ is rate and $n$ is duration
An annuity left unpaid for a certain number of years is called ________ for that number of years.
-
Deferred Annuity
-
Uniform Annuity
-
Forborne Annuity
-
Immediate Annuity
An annuity left unpaid for a certain number of years is called forborne annuity for that number of years.