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.

When equal payments are made at the end of each period for a certain time period, they are treated as an annuity due.

When equal payments are made at the end of each period for a certain time period, they are treated as ordinary annuities.

An ordinary annuity of equal time earns less interest than an annuity due.

A perpetuity is a series of equal payments made at fixed intervals that continue infinitely and can be thought of as an infinite annuity.

Which of the following is an example of an annuity?

A lump$-$sum payment made to a life insurance company that promises to make a series of equal payments later for some period of time

An investment in a certificate of deposit $($CD$)$

Ashley has a large and growing collection of animated movies. She wants to replace her old television with a new LCD model, so she has started

saving for it$.$ At the end of each year, she deposits $$1,060$ in her bank account, which pays her $7\%$ interest annually. Ashley wants to keep saving for

two years and then buy the newest LCD model that is available. Ashley's savings are an example of an annuity. How much money will Ashley have to

buy a new LCD TV at the end of two years?

$$1,865\mathrm{.}07$

$$2,194\mathrm{.}20$

$$2,347\mathrm{.}79$

$$1,916\mathrm{.}50$

If Ashley deposits the money at the beginning of every year and everything else remains the same, she will save

by the end of two

years.