Question

question 11 (1 point)
which of the following best describes an annuity?
a an investment with no interest
b a type of stock that pays dividends
c a one - time investment with immediate returns
d a series of regular payments made into or received from an account
question 12 (1 point)
if an annuity compounds interest monthly, what does that mean?
a interest is added once a year
b interest is never added
c interest is added 12 times a year
d interest is added every two years

Explanation:

An annuity is a series of equal - value cash flows occurring at regular intervals. Compounding monthly means interest is calculated and added 12 times a year.

Answer:

Question 11: d. A series of regular payments made into or received from an account
Question 12: c. Interest is added 12 times a year