Which One of the Following Qualifies as an Annuity Payment

Which one of the following can be classified as an annuity but not as a perpetuity. The future value of an annuity decreases as the interest rate increases.

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Qualified Optional Survivor Annuity means a joint and survivor annuity that the Participant subject to the spousal consent rules described in Section 1405 may elect and which 1 if the survivor annuity portion of the Plans qualified joint and survivor annuity as defined in a above is less than 75 then has a survivor annuity portion of 75 or 2 if the survivor annuity portion.

. The future value of an annuity decreases as the interest rate increases. Car repairs Monthly payments on iPhone Student loan repayment Medical bills Clothing purchases. An annuity is a series of payments pursuant to a contract.

If unspecified you should assume an annuity is an annuity due. The future value of Annuity A is greater than the future value of Annuity B. A payment to a beneficiary from a pension plan is called a distribution.

The present value of an annuity is equal to the cash flow amount divided by the discount rate. These are the homework questions for Chapter 5 in Corporate Finance. Which one of the following qualifies as an annuity payment.

Benefit payments must begin at age 59 12 to avoid a penalty d. The present value of an annuity is equal to the cash flow amount divided by the discount rate. B will pay one more payment than A will c.

An annuity is an unending stream of equal payments occurring at equal intervals of time. Travis is buying a car and will finance it with a loan which requires monthly payments of 265 for the next 4 years. An annuity due has payments that occur at the beginning of each time period.

Finance questions and answers. Annuity A pays 100 at the end of each month for 10 years. The stated interest rate is the interest rate expressed.

Annuity A has a higher future value but a lower present value than Annuity B. An ordinary annuity is a series of periodic payments such as monthly or quarterly that are made at the end of each period. With a qualified pension plan earnings on.

An ordinary annuity is one that pays consistent quarterly stock dividends. In terms of the interest payment made each period. An annuity due has payments that occur at the beginning of each time period.

The rate of return on both annuities is 8 percent. Which one of the following statements is correct given this information. Annuity B will pay one more payment than Annuity A will.

If unspecified you should assume an annuity is an annuity due. The present value of Annuity A is equal to the present value of Annuity B. The future value of an annuity decreases as the interest rate increases.

Annuity B has both a higher present value and a higher future value than Annuity A. An annuity due has payments that occur at the beginning of each time period. If unspecified you should assume an annuity is an annuity due.

Which one of the following qualifies as an annuity payment. The future value of an annuity decreases as the interest rate increases. Which one of the following qualifies as an annuity payment.

Increasing monthly payments forever Increasing quarterly payments for six years Unequal payments each year for nine years Equal annual payments for life Equal weekly payments forever. An annuity due has payments that occur at the beginning of each time period. Create your own Quiz.

His car payments can be described by which one of the following terms. Contributions to a pension plan can only be made by the beneficiary. Which one of the following qualifies as an annuity payment.

The correct answer is E Timing of the annuity payments. Which one of the following terms best describes these scholarship payments. Benefit payments are always taxable b.

Payments on an annuity due on the other hand are made at the start of each term. Car repairs Monthly payments on iPhone Student loan repayment Medical bills. What is the tax treatment of benefit payments for a non-qualified annuity.

Benefit payments received after 70 12 are always tax-exempt. An annuity due is one. An annuity is an unending stream of equal payments occurring.

Which one of the following statements concerning annuities is correct. Annuity B pays 100 at the beginning of each month for 10 years. The present value of an annuity is equal to the cash flow amount divided by the discount rate.

Benefit payments are subject to taxes only prior to age 70 12 c. The present value of A is equal to present value of B b.

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