Question

Which of the following statements about annuities are true?

1) Annuities are a series of equal cash flows received or paid at regular intervals.
2) The present value of an annuity is the sum of the present values of each cash flow.
3) The future value of an annuity is the sum of the future values of each cash flow.
4) Annuities can only be received, not paid.

Answer 1

Annuities are a series of equal cash flows received or paid at regular intervals. The present value of an annuity is the sum of the present values of each cash flow. The future value of an annuity is the sum of the future values of each cash flow. Annuities can be both received and paid.

Step-by-step explanation:

Annuities are a series of equal cash flows received or paid at regular intervals. The present value of an annuity is the sum of the present values of each cash flow. The future value of an annuity is the sum of the future values of each cash flow. Annuities can be both received and paid.