1. The problem asks which statement is TRUE about simple annuities. 2. A simple annuity is a series of equal payments made at regular intervals, where the payment interval and the compounding period are the same. 3. Let's analyze each option: - "The payment interval is always shorter than the compounding period." This is FALSE because in simple annuities, the payment interval equals the compounding period. - "They always have increasing payments." This is FALSE because simple annuities have equal payments, not increasing. - "The payment interval and compounding period are the same." This is TRUE by definition of simple annuities. - "Compounding must be done monthly only." This is FALSE; compounding can be any regular period matching the payment interval. 4. Therefore, the TRUE statement is: **The payment interval and compounding period are the same.**