When you pay the same amount every month on your car loan for a period of three years, the stream of cash flows is called an annuity.

Name: When you pay the same amount every month on your car loan for a period of three years, the stream of cash flows is called an annuity.
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An annuity is a stream of equal cash flows made at equal time intervals. In the case of a car loan, if you are paying the same amount every month for a period of three years, it represents an annuity.

When You Pay the Same Amount Every Month on Your