A trend among universities is to guarantee tuition to incoming freshmen for a four-year period.Further,the annual amount due is collected in equal payments collected every three months.Although the payments are equal as well as equally spaced,this is NOT an example of an annuity because the payments are made every three months rather than on a monthly or annual basis.

Question

Quizplus · Accepted Answer

An annuity is a series of equal payments made at equal intervals, which can be monthly, quarterly or annually. In this case, the payments are made every three months, which is not a standard interval for an annuity. Therefore, the given statement is false.

A Trend Among Universities Is to Guarantee Tuition to Incoming