Question

Security payment type in which payments are made at equal intervals of time and every payment amount is same is classified as _______________.

• A. fixed interval investment
• B. fixed payment investment
• C. annuity
• D. lump sum amount

Answer 1

The correct option is C annuity

An annuity is a series of equal payments in equal time periods. Usually, the time period is $1$ year, which is why it is called an annuity, but the time period can be shorter, or even longer. These equal payments are called the periodic rent. The amount of the annuity is the sum of all payments.
such security payment type in which payments are made at equal intervals of time and every payment amount is same is classified as annuity.