A series of equal periodic payments that starts more than one period after the agreement is called:
A) An annuity due.
B) An ordinary annuity.
C) A future annuity.
D) A deferred annuity.

Question

Quizplus · Accepted Answer

A deferred annuity is a type of annuity where the series of equal periodic payments starts more than one period after the agreement. An annuity due starts immediately, while an ordinary annuity starts at the end of the first period. A future annuity is not a recognized term in finance.

A Series of Equal Periodic Payments That Starts More Than