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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
Define an annuity.
💡 Hint: Think about loans or regular savings.
Question 2
Easy
What is the difference between an ordinary annuity and an annuity due?
💡 Hint: Consider when you would receive or pay these amounts.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What is an annuity?
- A single payment
- A series of equal payments
- A growing payment plan
💡 Hint: Think about regular installments.
Question 2
True or False: Annuity due payments occur at the end of the period.
- True
- False
💡 Hint: Consider timing of payments.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
An investor wishes to save ₹2,000 at the end of every year for 20 years in an ordinary annuity at a 6% interest rate. What will be the total future value after 20 years?
💡 Hint: Consider using future value factors.
Question 2
Evaluate a situation that would require calculating the present value of an annuity versus the future value. Why would one be more beneficial?
💡 Hint: Think about retirement timing and expenses.
Challenge and get performance evaluation