An annuity is
A) always an annual payment.
B) a guaranteed equal payment for a given number of periods.
C) always a monthly payment.
D) a payment that does not have to be equally spaced.
E) a payment that can be made anytime after you receive the bill.

Question

Quizplus · Accepted Answer

An annuity is a guaranteed equal payment for a given number of periods. The word annuity might make you think it has to be an annual payment, but general interpretation is that the payments must be equally spaced, so monthly, quarterly, or annual payments all qualify as annuities.

An Annuity Is