Give examples of annuities from your own experience.
Expert Answer
An annuity is a series of payments made at equal intervals
An annuity can be defined as the combination of regular paymentswhich are done on a fixed and equal interval or tie period.
Example:- I have recently purchased life insurance having thecover of $100,000. For this, I have to pay an installment of$10,000 per year for the next 9 years.
Apart from this, last year I bought a car on installment andeach month installments of $1000 is debited from my bank accountfor the same.