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Commerce · Q335

Financial Management

Graduate and Post Graduate · Commerce · question 335

Q335

Lottery payoffs and payment for rental apartments are examples of

A.
lump sum amount
B.
deferred annuity
C.
annuity due
Answer
D.
payment fixed series

Answer: Option C

Solution

Answer: Option C
Solution:
Lottery payoffs and payment for rental apartments are examples of annuity due. An annuity due is a repeating payment that is made at the beginning of each period, such as a rent payment.