Which one of the following qualifies as an annuity?

Question

Quizplus · Accepted Answer

An annuity is a series of fixed payments made at regular intervals over a set period of time. An auto loan payment fits this definition as it involves a fixed payment made at regular intervals (e.g. monthly) until the loan is fully paid off. Weekly grocery bills, clothing purchases, car repairs, and medical bills do not fit this definition as they do not involve a fixed payment made at regular intervals over a set period of time.

Which One of the Following Qualifies as an Annuity