Question

Janis just won a scholarship that will pay her $500 a month, starting today, and continuing for the next 48 months. Which one of the following terms best describes these scholarship payments?

1) Annuity
2) Loan
3) Salary
4) Stipend

Answer 1

Janis' scholarship payments can be described as an annuity.

Step-by-step explanation:

The term that best describes Janis' scholarship payments is Annuity.

An annuity is a series of equal payments made at regular intervals over a specified period of time. In this case, Janis will receive $500 each month for the next 48 months, making it an annuity.

Annuities are commonly used to describe payments such as monthly salaries, pensions, or scholarship grants.