24.5 - Annuities
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Practice Questions
Test your understanding with targeted questions
Define an annuity.
💡 Hint: Think about loans or regular savings.
What is the difference between an ordinary annuity and an annuity due?
💡 Hint: Consider when you would receive or pay these amounts.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is an annuity?
💡 Hint: Think about regular installments.
True or False: Annuity due payments occur at the end of the period.
💡 Hint: Consider timing of payments.
1 more question available
Challenge Problems
Push your limits with advanced challenges
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.
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.
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