What is Annuity? - Definition & Formula


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What is the definition of an annuity?

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1. Which of the following examples is an annuity?

2. Which of the following statements is true regarding annuities?

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About This Quiz & Worksheet

The following quiz and worksheet will show you what annuities are. While taking the quiz, you will be tested on subjects such as variables used in the annuity formula and inflation.

Quiz & Worksheet Goals

During the assessments, you will be tested on:

  • What is an annuity
  • Inflation
  • Examples of annuities
  • Variables used in the annuity formula

Skills Practiced

  • Information recall - access the knowledge you've gained regarding annuities
  • Knowledge application - use your knowledge to answer questions about different types of annuities
  • Reading comprehension - ensure that you draw the most important information from the lesson regarding inflation

Additional Learning

If annuities are something that you want to learn more about, review the accompanying lesson called What is Annuity? - Definition & Formula. This lesson covers the following objectives:

  • Defines what an annuity is
  • Identifies examples of annuities
  • Explains the present value of annuities
  • Explores the time value of money