Assuming Equal Time Intervals Between the Payments and a Constant $\begin{array}{lllllllll}\text { Year } 1& \text { Year } 2& \text { Year } 3 & \text { Year }4& \text { Year } 5 & \text { Year } 6\end{array}$

Multiple Choice

Assuming equal time intervals between the payments and a constant rate of return,which of the following cash flow patterns represents an annuity? $\begin{array}{lllllllll}\text { Year } 1& \text { Year } 2& \text { Year } 3 & \text { Year }4& \text { Year } 5 & \text { Year } 6\end{array}$
A. $\begin{array}{lllllllll}\$ 1,000 & \$ 1,000 & \$ 1,000 & \$ 1,000 & \$ 1,000 & \$ 1,000\end{array}$
B. $\begin{array}{llllllll}\$ 500 & &&\$ 0 &&& \$ 500 & &\$ 500&& \$ 500 && \$0\end{array}$
C. $\begin{array}{llllllll}\$ 100 &&& \$ 200 && \$ 300 && \$ 400 && \$500&&\$600\end{array}$

A) A
B) B
C) C
D) Any of the answers can represent an annuity.