What is a series of equal payments to be received at the beginning of each period, for a finite period of time, called?

What is a series of equal payments to be received at the beginning of each period, for a finite period of time, called?

A) A perpetuity

B) An annuity due

C) A cash cow

D) A deferred annuity

One characteristic of an annuity is that an equal sum of money is deposited or withdrawn each period.

Answer:  TRUE

The present value of an annuity increases as the discount rate increases.

Answer:  FALSE

We can use the present value of an annuity formula to calculate constant annual loan payments.

Answer:  TRUE

A compound annuity involves depositing or investing a single sum of money and allowing it to grow for a certain number of years.

Answer:  FALSE

When repaying an amortized loan, the interest payments increase over time.

Answer:  FALSE

An amortized loan is a loan paid in unequal installments.

Answer:  FALSE

A loan amortization schedule provides a breakdown of loan payments into principal and interest payments.

Answer:  TRUE

Holding all other variables constant, payment per period for an annuity due will be higher than an ordinary annuity.

Answer:  FALSE