Question

what is meant by the value of an annuity?

choose the correct answer below.

a. the value of an annuity is the sum of all deposits paid

b. the value of an annuity is the sum of all deposits minus all interest paid

c. the value of an annuity is the sum of all interest paid.

d. the value of an annuity is the sum of all deposits plus all interest paid

Explanation:

Annuity value includes both deposits and interest.

Answer:

D. The value of an annuity is the sum of all deposits plus all interest paid