Travis Is Buying A Car And Will Finance It With A Loan That Requires Monthly Payments Of $265 For The Next Four Years. H is Car Payments Can Be Described By Which One Of The Following Terms?
Travis Is Buying A Car And Will Finance It With A Loan That Requires Monthly Payments Of $265
Answer:
Travis’s car payments, which amount to $265 per month for the next four years, can be described as an annuity. An annuity is a series of equal payments made at regular intervals. In this case, Travis is making equal monthly payments of $265 for four years, which fits the definition of an annuity. This term is commonly used in finance to describe scenarios where regular payments are made over a period of time at a fixed interest rate.