alleryStart learning →What is an annuity?
AEqual payments at set intervals
BOne single payment up front
CA payment that changes monthly
DA payment made only at the end
Answer & Solution
Correct answer: A. Equal payments at set intervals
1. An annuity is a run of equal payments made at regular intervals over a fixed term.
2. Interest is charged or earned on the balance while those payments are being made.
3. Saving a fixed amount each month into an investment fund is one example.
4. Repaying a home loan in fixed monthly instalments is another.
_Source: Siyavula Mathematics Grade 12 (Everything Maths, CC BY 4.0), Chapter 3: Finance_
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