[amp_mcq option1=”fixed interval investment” option2=”fixed payment investment” option3=”annuity” option4=”lump sum amount” correct=”option3″]
The correct answer is C. Annuity.
An annuity is a series of equal payments made at regular intervals for a fixed period of time. The payments can be made monthly, quarterly, semi-annually, or annually. Annuities are often used to provide income in retirement.
A fixed interval investment is an investment in which the amount invested is the same each time. For example, you might invest $100 each month into a fixed interval investment.
A fixed payment investment is an investment in which the amount paid out is the same each time. For example, you might receive $100 each month from a fixed payment investment.
A lump sum amount is a single payment that is made at one time. For example, you might receive a lump sum payment of $10,000 from an inheritance.