Which of the Following Cash Flow Patterns Represents of an Annuity

question 45

Multiple Choice

Which of the following cash flow patterns represents of an annuity? $$\begin{array} { | l | c | c | c | c | c | c | } \hline & \text { Year 1 } & \text { Year 2 } & \text { Year 3 } & \text { Year 4 } & \text { Year 5 } & { \text { Year 6 } } \\\hline \text { A) } & \$ 1,000 & \$ 1,000 & \$ 1,000 & \$ 1,000 & \$ 1,000 & \$ 1,000 \\\hline \text { B) } & \$ 500 & \$ - 0 - & \$ 500 & \$ 500 & \$ 500 & \$ - 0 - \\\hline \text { C) } & \$ 100 & \$ 200 & \$ 300 & \$ 400 & \$ 500 & \$ 600 \\\hline\end{array}$$

• A) A
• B) B
• C) C
• D) Any of the answers can represent an annuity.

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