Asked by Diana Morrissey on May 07, 2024
Verified
A series of equal cash flows at fixed intervals is termed a(n)
A) present value index
B) price-level index
C) net cash flow
D) annuity
Equal Cash Flows
Consistent payments or receipts over a period of time in an investment or finance context.
Fixed Intervals
Regular, specified periods of time between events or actions.
Annuity
A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.
- Understand the concept of an annuity and its relevance in investment decisions.
Verified Answer
JM
Jonathan MendezMay 10, 2024
Final Answer :
D
Explanation :
A series of equal cash flows at fixed intervals is called an annuity. Options A and B do not relate to this concept, and option C is too broad and does not specifically refer to a series of equal cash flows.
Learning Objectives
- Understand the concept of an annuity and its relevance in investment decisions.
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