which of the following best describes an annuity? deposits are made at random (whenever you have extra…

which of the following best describes an annuity? deposits are made at random (whenever you have extra money) into an account earning interest. equal, regular deposits are made into an account earning interest. a lump sum is deposited into an account earning simple interest. a lump sum is deposited into an account earning compound interest.

which of the following best describes an annuity? deposits are made at random (whenever you have extra money) into an account earning interest. equal, regular deposits are made into an account earning interest. a lump sum is deposited into an account earning simple interest. a lump sum is deposited into an account earning compound interest.

Answer

Brief Explanations:

An annuity is characterized by equal, regular payments (deposits or withdrawals) made over a period of time into an account that earns interest. Random deposits do not define an annuity, nor do lump - sum deposits (simple or compound interest).

Answer:

Equal, regular deposits are made into an account earning interest.