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Frank invests 1000 at the beginning of each calendar year. What is this investment type called?

A) Fixed deposit
B) Annuity
C) Mutual fund
D) Stocks

User Te
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1 Answer

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Final answer:

Frank's investment type is called an annuity, specifically a fixed annuity where he is making regular fixed contributions and will receive a specified amount of income in return.

Step-by-step explanation:

The investment type Frank is making by investing $1000 at the beginning of each calendar year is called an annuity.

An annuity is a financial product that is designed to provide regular income payments to the investor over a specified period of time. In this case, Frank is investing $1000 at the beginning of each year, which will accumulate over time and provide him with a steady income stream.

Annuities can be structured in different ways, but in Frank's case, it is a fixed annuity where he is making regular fixed contributions and will receive a specified amount of income in return.

User TravellingGeek
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