The correct answer is A. Amount of annuity payable is directly proportional to Length of annuity.
An annuity is a series of equal payments made at regular intervals for a fixed period of time. The amount of annuity payable is determined by the following factors:
- The amount of the payment
- The length of the annuity
- The interest rate
The longer the annuity, the more payments will be made and the higher the total amount of the annuity will be. The higher the interest rate, the more money will be earned on the payments and the higher the total amount of the annuity will be.
Option B is incorrect because the amount of annuity payable is not inversely proportional to the length of the annuity. In other words, the longer the annuity, the higher the amount of the annuity will be, not lower.
Option C is incorrect because the amount of annuity payable does have a correlation with the length of the annuity. The longer the annuity, the higher the amount of the annuity will be.
Option D is incorrect because the question is asking for the correct answer, not whether or not the user wants to attempt the question.