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Which of the following statements about annuities are true? Check all that apply. A perpetuity is a constant, infinite stream of equal cash flows that

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Which of the following statements about annuities are true? Check all that apply. A perpetuity is a constant, infinite stream of equal cash flows that can be thought of as an infinite annuity. An annuity due is an annuity that makes a payment at the end of each period for a certain time period. An annuity due earns more interest than an ordinary annuity of equal time. 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? A retirement fund set up to pay a series of regular payments 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 $1,970 in her local bank, which pays her 10% annual interest. Luana decides that she will continue to do this for the next two years. Luana's savings are an example of an annuity. How much will she save by the end of two years? $4,550.70 $3,419.01 $4,137.00 $3,516.45 If Luana deposits the money at the beginning of every year and everything else remains the same, she will save $3,760.91 by the end of two years. $4,137.00 $3,760.91 $5,688.38 $4,550.70 Your goal is to have $15,000 in your bank account by the end of six years. If the interest rate remains constant at 10% and you want to make annual identical deposits, how much will you need to deposit in your account at the end of each year to reach your goal? $1,944.11 $1,360.88 O $2,332.93 $1,749.70 If your deposits were made at the beginning of each year rather than an at the end, by how much would the amount of your deposit change if you still wanted to reach your goal by the end of six years? $150.22 $132.55 $176.73 $220.91

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