Asked by Madison Bradford on Apr 24, 2024
Verified
$100 a quarter for 10 years fits the definition of an annuity.
Annuity
A level stream of cash flows for a fixed period of time.
- Familiarize oneself with the descriptions and disparities between annuities due and conventional annuities.
Verified Answer
NV
Nicole Vanderbush Parker6 days ago
Final Answer :
True
Explanation :
An annuity is a series of equal payments made at regular intervals over a specified period. Paying $100 every quarter for 10 years fits this definition, as it involves regular payments (every quarter) of the same amount ($100) over a fixed period (10 years).
Learning Objectives
- Familiarize oneself with the descriptions and disparities between annuities due and conventional annuities.