Which of the following cash flow patterns represents of an annuity? $$\begin{array} { | l | c | c | c | c | c | c | }
\hline & \text { Year 1 } & \text { Year 2 } & \text { Year 3 } & \text { Year 4 } & \text { Year 5 } & { \text { Year 6 } } \
\hline \text { A) } & \$ 1,000 & \$ 1,000 & \$ 1,000 & \$ 1,000 & \$ 1,000 & \$ 1,000 \
\hline \text { B) } & \$ 500 & \$ - 0 - & \$ 500 & \$ 500 & \$ 500 & \$ - 0 - \
\hline \text { C) } & \$ 100 & \$ 200 & \$ 300 & \$ 400 & \$ 500 & \$ 600 \
\hline
\end{array}$$

Question

Which of the following cash flow patterns represents of an annuity? $$\begin{array} { | l | c | c | c | c | c | c | } 
\hline & \text { Year 1 }  &  \text { Year 2 }  &  \text { Year 3 } & \text { Year 4 } & \text { Year 5 } & { \text { Year 6 } } \
\hline \text { A) } & \$ 1,000 & \$ 1,000 & \$ 1,000 & \$ 1,000 & \$ 1,000 & \$ 1,000 \
\hline \text { B) } & \$ 500 & \$ - 0 - & \$ 500 & \$ 500 & \$ 500 & \$ - 0 - \
\hline \text { C) } & \$ 100 & \$ 200 & \$ 300 & \$ 400 & \$ 500 & \$ 600 \
\hline
\end{array}$$

Quizplus · Accepted Answer

An annuity is a series of equal payments made at regular intervals. Option A shows equal payments of $1,000 each year, which fits the definition of an annuity.

Which of the Following Cash Flow Patterns Represents of an Annuity