## Engineering Economy:

An annuity is the type of payment in which one person pays a fixed sum of money to someone each year. It can be done yearly or in other regular time intervals.

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Let:

FV = \$7000; future value

t = 3 years

n = 52; since 1 year = {eq}52\frac{1}{7} {/eq} weeks

r = 3%

M= amount of weekly deposits made into the...

What is Annuity? - Definition & Formula

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Chapter 2 / Lesson 7
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An annuity is a fixed amount of income paid at regular intervals, such as monthly or quarterly. Learn the definition and formula for annuity, review examples of annuities, and understand how to determine the value of annuities.