an annuity

[logistic_guy]

Determine whether or not each of the following situations describes an annuity. If the situation is not an annuity, explain why it is not.

$\displaystyle \bold{1.}$ A car lease requires monthly payments of $235.94 for 5 years.
$\displaystyle \bold{2.}$ Your cell phone bill.
$\displaystyle \bold{3.}$ The money Adam pays for groceries each week.
$\displaystyle \bold{4.}$ Ashok bought a guitar from his brother for $350. Since he didn’t have the money to pay for it up front, his brother agreed that he could pay him $25 a week until his payments add up to $350.
$\displaystyle \bold{5.}$ Caries’ Candy Counter pays $1,400 a month in rent for its retail store.
$\displaystyle \bold{6.}$ The rent for the Tastee Lard Donut Shoppe is $850 a month plus 2% of the monthly sales.
$\displaystyle \bold{7.}$ Cheryl pays for her son’s day care at the beginning of every month. Her provider charges $35 for each day her son is scheduled to be there during the month.
$\displaystyle \bold{8.}$ Every single morning, rain or shine, Cieran walks to his favorite coffee shop and buys a double redeye latte.
$\displaystyle \bold{9.}$ According to their divorce decree, Terry is required to pay his ex-wife $590 a month in child support until their daughter turns 21.
$\displaystyle \bold{10.}$ In response to her church’s annual stewardship campaign, Peggy pledged to make an offering of $20 each week.

 

[khansaheb]

Determine whether or not each of the following situations describes an annuity. If the situation is not an annuity, explain why it is not.

$\displaystyle \bold{1.}$ A car lease requires monthly payments of $235.94 for 5 years.
$\displaystyle \bold{2.}$ Your cell phone bill.
$\displaystyle \bold{3.}$ The money Adam pays for groceries each week.
$\displaystyle \bold{4.}$ Ashok bought a guitar from his brother for $350. Since he didn’t have the money to pay for it up front, his brother agreed that he could pay him $25 a week until his payments add up to $350.
$\displaystyle \bold{5.}$ Caries’ Candy Counter pays $1,400 a month in rent for its retail store.
$\displaystyle \bold{6.}$ The rent for the Tastee Lard Donut Shoppe is $850 a month plus 2% of the monthly sales.
$\displaystyle \bold{7.}$ Cheryl pays for her son’s day care at the beginning of every month. Her provider charges $35 for each day her son is scheduled to be there during the month.
$\displaystyle \bold{8.}$ Every single morning, rain or shine, Cieran walks to his favorite coffee shop and buys a double redeye latte.
$\displaystyle \bold{9.}$ According to their divorce decree, Terry is required to pay his ex-wife $590 a month in child support until their daughter turns 21.
$\displaystyle \bold{10.}$ In response to her church’s annual stewardship campaign, Peggy pledged to make an offering of $20 each week.

What is the definition of annuity?

show us your effort/s to solve these problems.

 

[logistic_guy]

What is the definition of annuity?

An annuity is any collection of equal payments made at regular time intervals.

$\displaystyle \bold{1.}$ A car lease requires monthly payments of $235.94 for 5 years.

annuity

 

[logistic_guy]

$\displaystyle \bold{2.}$ Your cell phone bill.

not annuity.

Each month you will pay different amount depending on your usage.

 

[logistic_guy]

$\displaystyle \bold{3.}$ The money Adam pays for groceries each week.

not annuity.

As Adam pays different amount of money each week depending on what groceries he buys.

 

[logistic_guy]

$\displaystyle \bold{4.}$ Ashok bought a guitar from his brother for $350. Since he didn’t have the money to pay for it up front, his brother agreed that he could pay him $25 a week until his payments add up to $350.

annuity.