Travis is buying a car and will finance it with a loan that requires monthly payments of $265 for the next four years.His car payments can be described by which one of the following terms?

Question

Quizplus · Accepted Answer

Travis's car payments are monthly payments for a specific time period, which makes it an annuity. A perpetuity would be payments with no end date, a consol would have no principal repayment, a lump sum would be a one-time payment, and a factor is a multiplier used in calculations.

Travis Is Buying a Car and Will Finance It with a Loan