Assuming equal time intervals between the payments and a constant rate of return, which of the following cash flow patterns represents an annuity? Year 1 Year 2 Year 3 Year 4 Year 5 Year 6A)$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 B)$500 $0 $500 $500 $500 $0 C)$100 $200 $300 $400 $500 $600
A. A
B. B
C. C
D. Any of the answers can represent an annuity.
Answer: A
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