Which of the Following MOST Accurately Describes the Term Annuity

question 133

Multiple Choice

Which of the following MOST accurately describes the term annuity?

• A) An investment which grows in value over time
• B) An installment loan with amortizing principal payments
• C) A stream of equal installments of cash payments
• D) A term life insurance policy

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Definitions:

Pyroclastic Flows

Fast-moving currents of hot gas and volcanic matter (collectively known as tephra) that move away from a volcano during an explosive eruption.

Eruption Column

A column of volcanic ash and gas that erupts into the atmosphere during a volcanic explosion.

Volcanic Mudflows

A fast-moving flow of volcanic materials, water, and debris known as a lahar, typically associated with intense volcanic activity.

Obsidian

A generally gray to black, shiny volcanic glass, usually of felsic composition.