A fixed annual return on an investment is known as a(n) ______.

A fixed annual return on an investment is best described as an annuity. An annuity is a financial product that provides a series of payments made at equal intervals. These payments can be received on a monthly, quarterly, or annual basis, and they are typically predetermined and fixed over the term of the investment.

In the context of real estate and financial investments, annuities are often used for retirement plans where individuals wish to receive a stable income stream over a period of time. This concept is important in appraisals because it helps assess the value of future cash flows associated with the property.

The other options pertain to different financial concepts: a bonus is an additional reward often tied to performance, dividends are payments made to shareholders typically from a company's profits, and interest refers to the cost of borrowing money or the return on invested funds, which is not necessarily fixed. Understanding these distinctions is essential for anyone involved in real estate appraisal or financial investing.