Rory receives,from an insurance company,a payment of $5,000 each year,and he will continue to receive these payments until he dies.This series of payments is called a(n)
A)portfolio.
B)bond.
C)dividend.
D)annuity.

Question

Quizplus · Accepted Answer

An annuity is a series of payments made at regular intervals, typically over a period of time. In this case, Rory is receiving annual payments until his death, which fits the definition of an annuity. A portfolio is a collection of investments, a bond is a debt security that typically pays fixed interest, and a dividend is a payment made by a company to its shareholders. None of these terms accurately describe Rory's situation of receiving regular payments for life.

Rory Receives,from an Insurance Company,a Payment of $5,000 Each Year,and