Answer to Question #333586 in Financial Math for Trevor

Question

Which of the following statements best defines an annuity;

[1] An annuity is a series of equal or same amount payments at equal time intervals.

[2] An annuity is a periodic payment made to the lender.

[3] An annuity is a sequence of equal or same amount payments at equal time intervals.

[4] An annuity is an annual payment of money owed by a borrower to a lender.