Annuity Future Value is used to calculate what the value at a future date would be for a series of periodic payments. If the rate or periodic payment does change, then the sum of the future value of each individual cash flow would need to be calculated to determine the future value.

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Annuity Total Contribution is the actual amount the saver invested in the bank.

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For some people, an annuity is a good option because it can provide unregulated payments, tax benefits and a potential death benefit. Annuities can also come with different fees, some of which will cost as much as half of the value of your contract.

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When calculating simple interest, the number of compounding periods makes a significant difference. Generally, the higher the number of simple periods, the greater the amount of simple interest.

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This is an annuity wherein the payments are made at the end of the payment intervals. e.g. monthly electric bills called Ordinary annuity.

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False