The annuity which refers to a debt payment for recovering the initial amount or capital in equal periodical payments, is known as; A. Present Worth Annuity B. Sinking fund annuity C. Compound annuity D. Capital recovery annuity

The correct answer is: D. Capital recovery annuity.

A capital recovery annuity is an annuity that is used to recover the initial amount or capital in equal periodical payments. It is also known as a sinking fund annuity or a debt repayment annuity.

A present worth annuity is an annuity that is used to accumulate a future sum of money by making equal payments at regular intervals.

A compound annuity is an annuity in which the interest earned on each payment is added to the principal before the next payment is made.

A sinking fund is a fund that is set aside to pay off a debt or to finance a future project.