When the present value of an annuity is calculated as of two or more periods before the payment of the first rent, the annuity is a(n)
A)ordinary annuity
B)deferred ordinary annuity
C)annuity due
D)simple annuity

Question

Quizplus · Accepted Answer

When the present value of an annuity is calculated as of two or more periods before the payment of the first rent, it is a deferred ordinary annuity. This is because the annuity payments are deferred, meaning they will not start until a future period, and it is an ordinary annuity because the payments are made at the end of each period.

When the Present Value of an Annuity Is Calculated as of Two