7. An annuity is a series of equal payments occuring at equal time intervals, and this amount includes the sum of all payments plus interest, if allowed to accumulate at a definite rate of interest from the time of initial payment to the end of annuity term. Ordinary annuity is used in the calculation of the
o discrete compound interest
o depreciation by sinking fund method
o cash ratio
o manufacturing cost
Ans: B
o discrete compound interest
o depreciation by sinking fund method
o cash ratio
o manufacturing cost
Ans: B
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