Final answer:
Match A (MANY deposits) with Annuity, B (MANY withdrawals) with Payout Annuity, C (MANY payments) with Loans, and D (One deposit) with Compound interest. An annuity receives multiple deposits and a payout annuity is about withdrawals after contributions. Loans require multiple payments back to the lender, and compound interest accrues on an initial deposit over time.
Step-by-step explanation:
The question involves matching each letter that represents a financial activity with the correct financial term. Here's the match:
- A. MANY deposits - Annuity (Option 2)
- B. MANY withdrawals - Payout Annuity (Option 4)
- C. MANY payments - Loans (Option 1)
- D. One deposit - Compound interest (Option 3)
An annuity is a financial product that receives multiple deposits and pays out a fixed income stream over a certain period of time, while a payout annuity is focused on the withdrawal phase after many contributions have been made. Loans involve multiple payments made by the borrower to the lender over time. Compound interest is earned on an initial deposit and any accumulated interest from prior periods, typically involving fewer, larger deposits rather than many smaller ones.