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

Question

Quizplus · Accepted Answer

An annuity is a stream of cash flows that occur at regular intervals for a fixed period of time, such as monthly payments on a car loan for three years. So, Allen Bell's payment on a car loan for three years would be considered an annuity.

Allen Bell Pay the Same Amount Every Month on a Car