The term of annuity is
A) the interval between the first and the last payments
B) the length of the payment interval
C) the length of time from the beginning of the first payment interval to the end of the last payment interval
D) the length of the conversion interval
E) the length of time between the successive payments

Question

Quizplus · Accepted Answer

The term of annuity refers to the length of time from the beginning of the first payment interval to the end of the last payment interval. It is the time period over which the annuity contract will make payments to the annuitant or their beneficiaries. It is not the interval between payments (E) or the length of the conversion interval (D). While the length of the payment interval (B) may impact the term of annuity, it is not the primary definition of the term.

The Term of Annuity Is