An annuity is a series of
A) equal payments with interest compounded annually.
B) payments made at regular intervals in the future with interest compounded yearly.
C) payments made at points in the future earning simple interest on a regular basis.
D) equal payments made at regular intervals in the future with interest compounded at the end of each time period.

Question

Quizplus · Accepted Answer

An annuity consists of equal payments made at regular intervals, with interest compounded at the end of each period, which distinguishes it from other types of financial instruments that may involve unequal payments, simple interest, or different compounding intervals.

An Annuity Is a Series of