lump sum amount
deferred annuity
annuity due
payment fixed series
Answer is Right!
Answer is Wrong!
The correct answer is: A. lump sum amount.
A lump sum amount is a single payment made at a specific point in time. Lottery payoffs and payment for rental apartments are both examples of lump sum amounts.
A deferred annuity is an annuity that begins payments at a future date. A payment fixed series is a series of payments that are made at regular intervals.
An annuity due is an annuity in which the payments are made at the beginning of each period.
Here are some additional details about each option:
- Lump sum amount is a single payment made at a specific point in time. For example, if you win the lottery, you will receive a lump sum payment of the winnings. Or, if you rent an apartment, you will typically pay a lump sum amount for the first month’s rent.
- Deferred annuity is an annuity that begins payments at a future date. For example, you might choose to defer an annuity until you retire. This would allow you to accumulate more money in the annuity before you start receiving payments.
- Payment fixed series is a series of payments that are made at regular intervals. For example, if you have a mortgage, you will make a series of payments at regular intervals (usually monthly) until the mortgage is paid off.
- Annuity due is an annuity in which the payments are made at the beginning of each period. For example, if you have an annuity due, you will receive a payment at the beginning of each month.