An annuity may best 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, regardless of amount.
D) a series of consecutive payments of equal amounts.

Question

Quizplus · Accepted Answer

An annuity is a series of consecutive payments of equal amounts, typically made over a fixed period of time. This could be weekly, monthly, or yearly, but the amount paid is usually the same each time. This makes it easy to budget and plan for, as there are no surprises in terms of how much will be paid.

An Annuity May Best Be Defined as