# Examples of annuities include all the following except

## What are examples of annuities?

In investment, an annuity is a series of payments made at equal intervals. Examples of annuities are

**regular deposits to a savings account, monthly home mortgage payments, monthly insurance payments and pension payments**. Annuities can be classified by the frequency of payment dates.## Which of the following is an example of ordinary annuity?

Examples of ordinary annuities are

**interest payments from bonds**, which are generally made semiannually, and quarterly dividends from a stock that has maintained stable payout levels for years. The present value of an ordinary annuity is largely dependent on the prevailing interest rate.## What is annuity and its types?

Understanding Annuities

**An annuity that begins paying out immediately is referred to as an immediate annuity, while one that starts at a predetermined date in the future is called a deferred annuity**. The duration of the disbursements can also vary.

## Which of the following features are provided by annuities?

**In general, annuities have the following features.**

- Tax deferral on investment earnings. …
- Protection from creditors. …
- An array of investment options. …
- Taxfree transfers among investment options. …
- Lifetime income. …
- Benefits to heirs.

## What is annuity due Example?

Annuity due is

**an annuity whose payment is due immediately at the beginning of each period**. Annuity due can be contrasted with an ordinary annuity where payments are made at the end of each period. A common example of an annuity due payment is rent paid at the beginning of each month.## Which of the following is an example of simple annuity?

For example, most

**car leases**are simple annuities due, where payments are made monthly and interest rates are compounded monthly.## Which of the following is not included in an annuity contract?

Which of the following is NOT included in an annuity contract?

**AD&D rider**. ( All of these are included in an annuity contract EXCEPT an Accidental Death & Dismemberment (AD&D) rider.## Which of the following is not true regarding annuitant?

Terms in this set (49) Which of the following is NOT true regarding the annuitant?

**The annuitant cannot be the same person as the annuity owner**.## What are annuities used for?

An annuity is a long-term investment that is issued by an insurance company and is designed

**to help protect you from the risk of outliving your income**. Through annuitization, your purchase payments (what you contribute) are converted into periodic payments that can last for life.## What is an ordinary annuity?

An ordinary annuity is

**an annuity in which the cash flows, or payments, occur at the end of the period**. An ordinary annuity of cash inflows of $100 per year for 5 years can be represented like this: The cash flows occur at the end of years 1 through 5. And the first cash flow occurs at the end of year 1.## How is an ordinary annuity defined quizlet?

An ordinary annuity may be defined as:

**A series of equal payments made at regular intervals that are received at the end of each period**. In future value or present value problems, unless stated otherwise, cash flows are assumed to be: At the end of the time period.## Which one of the following statements best describes an ordinary annuity?

Solution(By Examveda Team) An ordinary annuity is

**a series of equal payments made at the end of each period for a fixed period of time**.## Which one of the following accurately defines an ordinary perpetuity?

Which one of the following accurately defines a perpetuity?

**Unending equal payments paid at equal time intervals**.## Which one of these best defines an annuity due quizlet?

Which one of these best defines an annuity due? An annuity due is

**a stream of equal payments paid at the beginning of each equal time interval for a set number of time periods**.## Which one of the following is an example of a perpetuity?

One example of a perpetuity is

**the UK’s government bond known as a Consol**. Bondholders will receive annual fixed coupons (interest payments) as long as they hold the amount and the government does not discontinue the Consol.## What is the difference between an annuity and a perpetuity?

**An annuity is a set payment received for a set period of time.**

**Perpetuities are set payments received forever**â€”or into perpetuity. Valuing an annuity requires compounding the stated interest rate. Perpetuities are valued using the actual interest rate.

## Which of the following best defines an annuity?

Annuities are most accurately described as

**a stream of equal cash payments made at equal time intervals**.## Which is the best definition of a growing annuity?

A growing annuity is

**where the amount in annual payments received grows every year at a certain percentage**. Let us calculate a growing annuity using the same values as in the previous example. The only addition is that the annual income of 80,000 will grow every year at a rate of 2%.