logistic_guy
Senior Member
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- Apr 17, 2024
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Determine whether or not each of the following situations describes an annuity. If the situation is not an annuity, explain why it is not.
1. A car lease requires monthly payments of $235.94 for 5 years.
2. Your cell phone bill.
3. The money Adam pays for groceries each week.
4. Ashok bought a guitar from his brother for $350. Since he didn’t have the money to pay for it up front, his brother agreed that he could pay him $25 a week until his payments add up to $350.
5. Caries’ Candy Counter pays $1,400 a month in rent for its retail store.
6. The rent for the Tastee Lard Donut Shoppe is $850 a month plus 2% of the monthly sales.
7. Cheryl pays for her son’s day care at the beginning of every month. Her provider charges $35 for each day her son is scheduled to be there during the month.
8. Every single morning, rain or shine, Cieran walks to his favorite coffee shop and buys a double redeye latte.
9. According to their divorce decree, Terry is required to pay his ex-wife $590 a month in child support until their daughter turns 21.
10. In response to her church’s annual stewardship campaign, Peggy pledged to make an offering of $20 each week.
1. A car lease requires monthly payments of $235.94 for 5 years.
2. Your cell phone bill.
3. The money Adam pays for groceries each week.
4. Ashok bought a guitar from his brother for $350. Since he didn’t have the money to pay for it up front, his brother agreed that he could pay him $25 a week until his payments add up to $350.
5. Caries’ Candy Counter pays $1,400 a month in rent for its retail store.
6. The rent for the Tastee Lard Donut Shoppe is $850 a month plus 2% of the monthly sales.
7. Cheryl pays for her son’s day care at the beginning of every month. Her provider charges $35 for each day her son is scheduled to be there during the month.
8. Every single morning, rain or shine, Cieran walks to his favorite coffee shop and buys a double redeye latte.
9. According to their divorce decree, Terry is required to pay his ex-wife $590 a month in child support until their daughter turns 21.
10. In response to her church’s annual stewardship campaign, Peggy pledged to make an offering of $20 each week.