A Stream of Equal Cash Payments Made at Equal Time

question 143

Multiple Choice

A stream of equal cash payments made at equal time intervals is called a(n) ________.

• A) present value
• B) annuity
• C) compound interest
• D) future value

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Definitions:

Pays

Relates to the act of settling a debt or fulfilling an obligation, particularly in the context of rendering payment for services or goods received.

Installment

Regular payments made over a period of time until the total debt is paid.

Substantially Impair

To significantly weaken or reduce the ability, value, or function of something.

Reject

To refuse to accept, submit to, believe, or make use of something.