Which of the following is NOT an example of an annuity cash flow?
A)Your pay check which is the same every month.
B)Your tuition payments which are the same every term.
C)The identical payment you make every two years for your share of a lake cabin that you own with other family members.
D)These are all annuity cash flows.

Question

Quizplus · Accepted Answer

All the options (A, B, and C) represent regular payments of a fixed amount at specific intervals, which is the definition of an annuity cash flow. Therefore, there is no option that is not an example of an annuity cash flow.

Which of the Following Is NOT an Example of an Annuity