An annuity is ________.
A) a mix of cash flows in conventional and nonconventional
B) a stream of perpetual cash flows
C) a series of constantly growing cash flows
D) a series of equal annual cash flows

Question

Quizplus · Accepted Answer

An annuity is a series of equal annual cash flows, either received or paid out. It can be a fixed annuity or a variable annuity, depending on the terms of the contract. Other types of cash flows or variations in amount over time do not meet the definition of an annuity.

An Annuity Is ________