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CIMAPRA17-BA2-1 Exam - Topic 1 Question 112 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam

Question #: 112
Topic #: 1

[All CIMAPRA17-BA2-1 Questions]

Which of the following is the correct definition is an annuity:

AA chain of regular cash flows up to a certain period of time.

BA series of cash outflows which goes on forever.

CA set of regular payments of increasing value.

Show Suggested Answer

Suggested Answer: A

by Nan at Jun 26, 2026, 04:21 AM

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Lynna

I thought an annuity was about fixed payments, but now I'm second-guessing if increasing payments could also fit the definition.

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Evangelina

5 days ago

I feel like option A sounds right because it mentions regular cash flows, which is what we studied.

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Jolene

10 days ago

I remember practicing a question that mentioned cash flows going on forever, but I can't recall if that was the definition of an annuity or something else.

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Kattie

15 days ago

I think an annuity is related to regular cash flows, but I'm not sure if it's just for a certain period or not.

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