Which of these are true about annuities?

• An annuity due is one that requires payments at the end of every month.
• A geometric perpetuity present value can be represented by K/(i-r).
• Because an increasing annuity immediate has an annuity due equation in its equation, it becomes an annuity due.

• I only
• II only
• III only
• II and III
• I, II, and III are all false

Hardiek, Aaron (June 2010). "Study Questions for Actuarial Exam 2/FM". digitalcommons.calpoly.edu. Retrieved November 20, 2023.

Solution: B

I- False: Annuity Due requires payments at the beginning of every month

II- True

III- False: It is still an annuity immediate

Hardiek, Aaron (June 2010). "Study Questions for Actuarial Exam 2/FM". digitalcommons.calpoly.edu. Retrieved November 20, 2023.