Asked by Madison Katelyn on Jul 04, 2024
Verified
The future value of an ordinary annuity is the accumulated value of each annuity payment excluding interest as of the date of the final payment.
Future Value
The value of an investment at a specified date in the future, taking into account factors like compound interest or returns.
Ordinary Annuity
A sequence of identical disbursements occurring at successive intervals for a set duration.
Accumulated Value
The total sum of all investments, earnings, and reinvestments over a period, often referring to the value of a life insurance policy.
- Familiarize yourself with the present and future value principles applicable to annuities, with a focus on ordinary annuities and annuities due.
Verified Answer
ZK
Zybrea KnightJul 04, 2024
Final Answer :
False
Explanation :
The future value of an ordinary annuity includes both the principal amount of each annuity payment and the interest earned on each payment up to the date of the final payment.
Learning Objectives
- Familiarize yourself with the present and future value principles applicable to annuities, with a focus on ordinary annuities and annuities due.