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Commerce · Q382

Financial Management

Graduate and Post Graduate · Commerce · question 382

Q382

Student loans, mortgages and car loans are examples of

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

Answer: Option B

Solution

Answer: Option B
Solution:
Student loans, mortgages and car loans are examples of deferred annuity. A deferred payment annuity is an insurance product that provides future payments to the buyer rather than an immediate stream of income.