Multiple choice

Amount of annuity payable is inversely related to which of the following?

  1. Principal sum of money

  2. Investment period

  3. Rate of return

  4. Duration of annuity payments

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Amount of annuity payable is inversely related to duration of annuity payments. The larger the annuity paid, the lesser the duration of annuity payments.