Assuming equal time intervals between the payments and a constant rate of return, which of the following cash flow patterns represents an annuity?

Name: Assuming equal time intervals between the payments and a constant rate of return, which of the following cash flow patterns represents an annuity?
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Question

Quizplus · Accepted Answer

An annuity is a series of cash flows that meets three criteria: (1) equal payment amounts, (2) equal time intervals between payments, and (3) a constant rate of return.

Assuming Equal Time Intervals Between the Payments and a Constant