Busıness Fınance I Deneme Sınavı Sorusu #858288

Which of the following is the correct definition of "Annuities"


the type of loan where the initial amount borrowed and interest is repaid in equal periodic instalments

the rate which is actually earned on an investment

a series of equal cash flows that occur for a given period at regular intervals.

the interest that one earns only from the initial capital (principal)

The calculation of Future Values that include the interest on interest


Yanıt Açıklaması:

An annuity is a series of equal cash flows that occur for a given period at regular intervals. Examples of annuities include loan repayments in instalments of equal amounts, interest payments on bonds, mortgage payments, insurance payments, rent payments, etc. 

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