When discussing time-value-of-money it is necessary to understand some key terminology. Which of the following terms refers to a fixed amount of money paid or received at the end of every recurring period (i.e. a series of equal lump sums)?
A) Future value
B) Present value
C) Ordinary annuity
D) Annuity due

Question

Quizplus · Accepted Answer

An ordinary annuity refers to a series of equal lump sum payments that occur at the end of each recurring period. This is different from an annuity due, which refers to payments made at the beginning of each period. Future value and present value refer to the value of money at different points in time.

When Discussing Time-Value-Of-Money It Is Necessary to Understand Some Key