An annuity may be defined as:
A) a payment at a fixed interest rate.
B) a series of payments of unequal amount.
C) a series of yearly payments.
D) a series of consecutive payments or receipts of equal amounts.

Question

Quizplus · Accepted Answer

An annuity is a series of consecutive payments or receipts of equal amounts. This can be yearly, monthly, or at any other set interval. The payments may be made or received for a fixed number of years or for the lifetime of the recipient. An annuity can be used for retirement income, an investment tool, or for a structured settlement.

An Annuity May Be Defined As