An annuity is an asset that pays a fixed amount each period for a specified number of periods.

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An annuity is a type of investment that pays a fixed amount at regular intervals, typically monthly, quarterly, or annually. This payment can be in the form of a series of equal payments or a lump sum payment. The number of payment periods can be predetermined or can continue indefinitely until the investor chooses to withdraw their funds. Annuities are commonly used for retirement savings or for generating a regular income stream.

An Annuity Is an Asset That Pays a Fixed Amount