What Is a Series of Equal Payments for a Finite

question 9

Multiple Choice

What is a series of equal payments for a finite period of time called?

• A) A perpetuity
• B) An axiom
• C) A lump sum
• D) An annuity

---

Definitions:

Note Written

A formally documented obligation in which one party promises to pay another party a predetermined sum of money at a specified date.

Interest-Bearing Note

A debt instrument that pays interest at a predetermined rate to the holder, typically issued in exchange for a loan or credit extended to the borrower.

Maturity Value

The amount that is due at the maturity or due date of a note.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage rate.