Question 20 of 30
Q.Example of Contigent annuity is :
(a) An endowment fund to give scholarship to the students.
(b) Personal loan from a Bank.
(c) Instalment of payment for a plot of land.
(d) All the above.
Puducherry TnboardTamil Nadu HSC First Year (DGE) Commerce Board 2023MCQ· 1mImportance★★★★★
67% · 20/30 Questions
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Start your 14-day free trial to unlock the full solution →A contingent annuity depends on an uncertain event; the scholarship endowment fund is such an example, so the answer is option (a).
Annuities are classified by when payments start and stop. In a contingent annuity, the payments continue until (or begin upon) the occurrence of an uncertain event rather than for a fixed, pre-known term.
- An endowment fund giving scholarships pays out depending on contingencies (students qualifying, the fund's conditions), so it is a contingent annuity. …
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