Natalia Greenberg opened a pizza place last year. She expects to increase her revenue from last year by 7 percent every year for the next 10 years. This is an example of a growing annuity.

Question

Quizplus · Accepted Answer

A growing annuity is a series of cash flows that increase over time. In this case, the revenue from the pizza place is expected to increase by 7 percent every year for the next 10 years, which fits the definition of a growing annuity.

Natalia Greenberg Opened a Pizza Place Last Year