Question

Mann Corporation has been investing $18,000 for the last four years in an investment scheme that will mature at the end of the current year. It will be receiving $80,000 at the time of the maturity. $80,000 received at maturity is an example of _____.
a. annuity due
b. ordinary annuity
c. lump-sum amount
d. uneven cash flow

Answer 1

Answer:

c. lump-sum amount

Explanation:

Lump-sum amount -

It refers to the one complete amount of money , is referred to as lump - sum amount .

A lump -sum investment ,. refers to the amount of money invested at one time .

Similarly ,

The returns can be lump - sum , where the person receives the complete amount at one go after maturation , is referred to as lump - sum amount .

Hence , from the given scenario of the question ,

The correct option is c. lump - sum amount .