An Annuity May Best Be Defined as

question 51

Multiple Choice

An annuity may best be defined as

• A) a payment at a fixed interest rate.
• B) a series of payments of unequal amount.
• C) a series of yearly payments, regardless of amount.
• D) a series of consecutive payments of equal amounts.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a common set of accounting principles, standards, and procedures that companies in the U.S. use to compile their financial statements.

Legal Capital

The portion of a company's equity that cannot legally be distributed to the shareholders as dividends, typically the par value of issued shares.

Corporate Creditors

Individuals or institutions owed money by a corporation, typically as a result of lending money or providing goods and services on credit.