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$100 a quarter for 10 years fits the definition of an annuity.
a) True
b) False

1 Answer

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Final answer:

A payment of $100 a quarter for 10 years represents an annuity, as it is a series of regular equal payments over a specified time period.

Step-by-step explanation:

A payment of $100 a quarter for 10 years does indeed fit the definition of an annuity. An annuity is a series of equal payments made at regular intervals over a specified period. Since the payments in this case ($100) are made quarterly (every three months), and this happens for a duration of 10 years, it meets the criteria of an annuity which is a financial product that results in regular disbursements to the holder over time.

An example of an annuity in real life would be a car lease, where the lessee makes regular monthly payments for a fixed number of months.

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