Question: Assuming equal time intervals between the payments and a constant rate of return, which of the following cash flow patterns represents an annuity? Year 1
Assuming equal time intervals between the payments and a constant rate of return, which of the following cash flow patterns represents an annuity?
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | ||||||||||||||||||
| A) | $ | 1,000 | $ | 1,000 | $ | 1,000 | $ | 1,000 | $ | 1,000 | $ | 1,000 | |||||||||||
| B) | $ | 500 | $ | 0 | $ | 500 | $ | 500 | $ | 500 | $ | 0 | |||||||||||
| C) | $ | 100 | $ | 200 | $ | 300 | $ | 400 | $ | 500 | $ | 600 | |||||||||||
| A | ||
| B | ||
| C | ||
| Any of the above |
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