A series of equal payments (e.g., deposit or cost) made at equal intervals of time is known as __________________?

Correct answer: C. Annuity

  • A. Perpetuity
  • B. Capital charge factor
  • C. Annuity
  • D. Future worth

Explanation

Equal payments made at equal time intervals form an annuity. A perpetuity is a special annuity that continues indefinitely, while future worth is the accumulated value rather than the payment series itself.

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