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Busıness Fınance I Deneme Sınavı Sorusu #858288
Busıness Fınance I Deneme Sınavı Sorusu #858288
Which of the following is the correct definition of "Annuities"
the type of loan where the initial amount borrowed and interest is repaid in equal periodic instalments |
the rate which is actually earned on an investment |
a series of equal cash flows that occur for a given period at regular intervals. |
the interest that one earns only from the initial capital (principal) |
The calculation of Future Values that include the interest on interest |
Yanıt Açıklaması:
An annuity is a series of equal cash flows that occur for a given period at regular intervals. Examples of annuities include loan repayments in instalments of equal amounts, interest payments on bonds, mortgage payments, insurance payments, rent payments, etc.
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