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)	$	1,340			$	1,340			$	1,340			$	1,340			$	1,340			$	1,340
B)	$	1,010			$	0			$	1,010			$	1,010			$	1,010			$	0
C)	$	270			$	370			$	470			$	570			$	670			$	770

Multiple Choice

• A

• B

• C

• Any of the answers can represent an annuity.