Answered

Which of the following is NOT true regarding the accumulation period of an annuity?

A. It is the period over which the owner makes payments into an annuity.
B. It would not occur in a deferred annuity.
C. It is also known as the pay-in period.
D. It is the period during which the annuity payments earn interest.



Answer :

GinnyAnswer

Final answer:

The accumulation period of an annuity involves making payments rather than specifically earning interest.


Explanation:

The correct statement regarding the accumulation period of an annuity is:

  • A. It is the period over which the owner makes payments into an annuity.
  • C. It is also known as the pay-in period.

Therefore, option D. It is the period during which the annuity payments earn interest is NOT true; the accumulation period is not specifically when annuity payments earn interest but when payments are made.


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