Which term is defined as a series of equal payments occurring at equal intervals of time?

The term that describes a series of equal payments occurring at equal intervals of time is known as an annuity. An annuity represents a financial product or cash flow that consists of a sequence of payments made at regular intervals, which can be monthly, quarterly, annually, or at any set timeframe.

This concept is vital in various financial applications, such as determining loan payments, retirement planning, or insurance products. Annuities can be categorized into different types, such as ordinary annuities, where payments are made at the end of each period, and annuities due, where payments are made at the beginning of each period.

Understanding annuities is essential because they allow individuals and businesses to calculate the present value of future cash flows, determine how much can be saved or invested over time, and plan for future financial needs. The consistent nature of the payments and intervals is what distinctly defines an annuity compared to other financial terms.

In contrast, terms like perpetuity refer to an endless series of payments, a mortgage involves a loan secured by real property, and discount generally refers to the reduction in price or the concept of present value compared to future value, but none of these correctly define a series of equal payments at equal intervals.