The present value of an annuity can be obtained by discounting the individual cash flows of an annuity and totalling them.

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True

False

Question $12$

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During the final stage in the life cycle, retirement, people experience higher incomes from their demanding careers.

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True

False

Question $13$

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Which cash inflow will probably be discontinued after retirement?

Question $13$Select one:

a$.$

Salary

b$.$

Social assistance benefits

c$.$

Dividend and interest received from investments

d$.$

Pension payments

Question $14$

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If you borrow $$20,000$ as a five$-$year loan from the bank and the bank requires you to make end$-$of$-$year payments of $$4878\mathrm{.}05,$ what is the annual interest rate on this loan?

Question $14$Select one:

a$.$

$7$ percent

b$.$

$4$ percent

c$.$

$8$ percent

d$.$

$6$ percent

Question $15$

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All of the following are types of taxable income except

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a$.$

the use of a company car.

b$.$

life insurance benefits.

c$.$

rental income.

d$.$

government benefits.