All of the following are conditions for an annuity except
A)periodic cash flows must be equal in amount
B)the time periods between the cash flows are the same length
C)the interest rate is constant for each time period
D)the interest rate is compounded at the middle of each time period

Question

Quizplus · Accepted Answer

An annuity does not require that the interest rate be compounded at the middle of each time period. The other three conditions listed (equal cash flows, equal time periods, and constant interest rate) are necessary for an annuity.

All of the Following Are Conditions for an Annuity Except