Considerations for Large Expenditures

What type of financial tool is described as level streams of regular payments occurring at regular intervals?

Annuity

Annuity:

Annuity is a financial tool that involves level streams of regular payments occurring at regular intervals. This type of tool is often used when considering large expenditures that might require repeating payments over a period of time.

When individuals or businesses need to budget for a significant expense that will recur, an annuity can provide a structured approach to making these payments. By setting up an annuity, the payer can ensure that the necessary funds will be available at the scheduled intervals to meet the financial obligation.