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Commerce · Q350

Financial Management

Graduate and Post Graduate · Commerce · question 350

Q350

A type of security payment in which payments are made at equal intervals of time and each payment amount is same is classified as

A.
fixed interval investment
B.
fixed payment investment
C.
annuity
Answer
D.
lump sum amount

Answer: Option C

Solution

Answer: Option C
Solution:
A type of security payment in which payments are made at equal intervals of time and each payment amount is same is classified as annuity. An annuity is a financial product that pays out a fixed stream of payments to an individual. These financial products are primarily used as an income stream for retirees.