Fixed and Variable Annuities Multiple Choice Questions with Answers – PDF Download

MCQ 1: The payments if it is made at the end of each period such as an end of the year is classified as:

1. ordinary annuity
2. deferred annuity
3. annuity due
4. Both A and B

MCQ 2: The lottery payoffs and payment for rental apartments are the examples of:

1. lump sum amount
2. deferred annuity
3. annuity due
4. payment fixed series

MCQ 3: A type of security payment in which payments are made at equal intervals of time and each payment amount is same is classified as:

1. fixed interval investment
2. fixed payment investment
3. annuity
4. lump sum amount

MCQ 4: The securities future value is $1,000,000 and the present value of securities is $500,000 with an interest rate of 4.5%, the 'N' will be:

1. 16.7473 years
2. 0.0304 months
3. 15.7473 years
4. 0.7575 years

MCQ 5: If the payment of security is paid as $100 at the end of year for three years, it is an example of:

1. fixed payment investment
2. lump sum amount
3. fixed interval investment
4. annuity