Direction: Read and analyze the questions carefully.

Choose the best answer and encircle the

letter.
1. A series of equal cash flows, or payments, made at regular intervals.
a. Simple Annuity
b. Annuity
c. Present Value of an Annuity
d. General Annuity
2. It is the principal that must be invested today to provide the regular payment of an annuity.
a. Simple Annuity
b. Annuity
c. Present Value of an Annuity
d. General Annuity
3. What interest conversion period is equal or the same as the payment interval?
a. Simple Annuity
b. General Annuity
c. Annuity
d. Present Value of an Annuity
4. It is an annuity wherein the interest conversion period is unequal or not the same as the
payment interval.
a. Simple Annuity
b. General Annuity
c. Annuity
d. Present Value of an Annuity
5. In what usage does simple annuity and general annuity differs?
a. Payment
b. Interest
c. Insurance
d. Tax
(1+𝑖)−𝑛 −1 𝑖
6. 𝑃𝑉 = 𝑃 [ ] [(1+𝑖)𝑏 + 𝑖] this formula represents to?
𝑖
a. Present Value of Simple Annuity
b. Present Value of General Ordinary Annuity
c. Present Value of Amount Annuity
d. Present Value of General Annuity Due
(1+𝑖)−𝑛 −1 𝑖
7. 𝐹𝑉 = 𝑃 [ ] [(1+𝑖)𝑏−1 + 𝑖] this formula represents to?
𝑖
a. Future Value of Simple Annuity
b. Future Value of General Ordinary Annuity
c. Future Value of General Annuity Due
d. Future Value of Amount Annuity
 (1+𝑖)𝐾 −1
8. 𝑃 = 𝑃𝑉 [1−(1+𝑖)−𝑛 ] this formula represents to?
a. Present Value of Regular Payment (P) of General Annuity
b. Present Value of General Ordinary Annuity
c. Present Value of Simple Annuity
d. Present Value of General Annuity Due
(1+𝑖)𝐾 −1
9. 𝑃 = 𝐹𝑉 [(1+𝑖)−𝑛−1] this formula represents to?
a. Future Value of Regular Payment (P) of General Annuity
b. Future Value of General Ordinary Annuity
c. Future Value of Simple Annuity
d. Future Value of General Annuity Due
(1+𝑖)𝑛 −1
10. 𝐹𝑉 = 𝑃 [(1+𝑖)𝑏 −1] this formula represents to?
a. Future Value of Regular Payment (P) of General Annuity
b. Future Value of General Ordinary Annuity
c. Future Value of Simple Annuity
d. Future Value of General Annuity Due
11. Current value of future payments from an annuity, given a specified rate of return, or
discount rate.
a. Simple Annuity
b. General Annuity
c. Amount Annuity
d. Present Value of an Annuity
1−(1+𝑖)𝑛
12. 𝑃𝑉 = 𝑃 [(1+𝑖)𝑏 −1] this formula represents to?
a. Present Value of Regular Payment (P) of General Annuity
b. Present Value of General Ordinary Annuity
c. Present Value of Simple Annuity
d. Present Value of General Annuity Due
13. Series of regular payments made at the end of each period, such as monthly or quarterly.
a. General Ordinary Annuity
b. General Annuity Due
c. Simple Annuity
d. Present Value of an Annuity
14. Annuities where payments are made at the beginning of each period but the compounding
period is NOT equal to the payment period.
a. General Ordinary Annuity
b. General Annuity Due
c. Simple Annuity
d. Present Value of an Annuity
15. An annuity where the payment intervals are not the same as the interest intervals.
a. General Annuity Due
b. General Annuity Due General Ordinary Annuity
c. Present Value of an Annuity
d. Regular Payment (P) of General Annuity

Answer Key
1. A
2. B
3. C
4. A
5. B
6. D
7. C
8. A
9. A
10. B
11. D
12. B
13. C
14. B
15. D