Discuss CIMA CIMAPRA17-BA2-1 Exam Topic 1 Question 112

Which of the following is the correct definition is an annuity:

AA chain of regular cash flows up to a certain period of time.

BA series of cash outflows which goes on forever.

CA set of regular payments of increasing value.

Suggested Answer: A

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21 comments · newest first

Glory 17 days ago

I feel confident about A too. It’s straightforward.

Rodrigo 22 days ago

A is definitely correct. It captures the essence of annuities.

Audry 27 days ago

C is misleading. Annuities don’t always increase in value.

Mariann 1 month ago

B sounds tempting, but it’s not accurate for annuities.

Dalene 1 month ago

I agree, A fits the definition best. It’s clear and concise.

Bettye 1 month ago

I think A is the right choice. Regular cash flows make sense.

Lonny 2 months ago

Exactly! A is straightforward. Regular payments over time.

Cathern 2 months ago

A is clear and precise. It captures the essence of an annuity.

Niesha 2 months ago

C is misleading. Annuities don’t necessarily increase in value.

Dalene 2 months ago

B sounds tempting, but it’s not accurate for annuities.

Samira 2 months ago

I agree, A fits the definition best. Time-bound cash flows are key.

Venita 2 months ago

I think A is the right choice. Regular cash flows make sense.

Cheryl 3 months ago

Totally agree with A), it’s straightforward!

Leatha 3 months ago

Wait, are we sure A) is the only definition?

Darci 3 months ago

C) sounds interesting, but it’s not an annuity.

Patria 3 months ago

I thought B) was correct at first, but it’s not.

Royce 3 months ago

A) is the right answer!

Lynna 3 months ago

I thought an annuity was about fixed payments, but now I'm second-guessing if increasing payments could also fit the definition.

Evangelina 4 months ago

I feel like option A sounds right because it mentions regular cash flows, which is what we studied.

Jolene 4 months ago

I remember practicing a question that mentioned cash flows going on forever, but I can't recall if that was the definition of an annuity or something else.

Kattie 4 months ago

I think an annuity is related to regular cash flows, but I'm not sure if it's just for a certain period or not.

CIMAPRA17-BA2-1 Exam - Topic 1 Question 112 Discussion