Which of the following MOST accurately describes the term annuity?

Question

Quizplus · Accepted Answer

An annuity is a type of financial product or contract that pays a stream of equal installments of cash payments to the investor or annuitant over a specified period of time. It is similar to a pension plan or a retirement savings plan, where the investor contributes money and receives regular payments in return. An annuity can be purchased from an insurance company or financial institution, and can be structured in various ways to meet the investor's needs. Thus, option C - 'A stream of equal installments of cash payments' is the correct description of the term annuity.

Which of the Following MOST Accurately Describes the Term Annuity