Homework Answers
Answer - An annuity
Reason - a series of equal cash flow paid at an equal interval is an annuity. It benefits both payer and receiver of payments. The payer gets an option to pay the amount in installments with a charge of interest and saves him from arranging and paying a lumsum large amount and it gives a benefit to receiver of cashflows in terms of interest that is received along with the cashflow.
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ANSWER : an annuity .
Equal amount paid at the end of each year to repay the loan is termed as an annuity.
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