Question

Gale Corporation leases the printing equipment it uses. The terms of the lease require the monthly lease payments to be made at the beginning of every month. This is an example of an annuity duea.trueb.false

Answer 1

Answer: TRUE

Explanation: Annuity is a financial term or financial Product which enabled individuals to invest funds to gain streams of income when the terms agreed have been met.

Annuity have basically two phases which includes the ACCUMULATION PHASE(the phase where the investor is still finding the Annuity) and a ANNUITISATION PHASE(the phase from when the Stream of payment starts to be paid by the financial institution).

Annuities can be made to be very flexible in which it can be for a FIXED,UNTERMED, DEFERRED etc.