Chapter 5 Assignment 6. Future value of annuities Aa Aa There are two categories of cash flows: single cash flows, referred to as "lump sums," and annuities. Based on your understanding of annuities, answer the following questions. Which of the following statements about annuities are true? Check all that apply. An annuity due earns more interest than an ordinary annuity of equal time. An annuity due is an annuity that makes a payment at the end of each period for a certain time period. A perpetuity is a constant, infinite stream of equal cash flows that can be thought of as an infinite annuity. Ordinary annuities make fixed payments at the end of each period for a certain time period. Which of the following is an example of an annuity? O A retirement fund set up to pay a series of regular payments O A fund that invests in technology companies and distributes quarterly dividends for two out of four quarters per year but not always the same quarters Luana loves shopping for clothes, but considering the state of the economy, she has decided to start saving. At the end of each year, she will deposit $1,060 in her local bank, which pays her 10% annual interest, Luana decides that she will continue to do this for she save by the end of seven years? the next seven years. Luana's savings are an example of an annuity. How much will $5,160.52 $8,547.94 O $11,062.04 $10,056.40 deposits the money at the beginning of every year and everything eise remains the same, she will save by the end of seven years. esc 04 4 6