The Powerball Lottery pays out winnings in twenty payments, with the first payment immediate, and the rest following once per year. This is an example of a(n):
A) lump-sum.
B) annuity due.
C) ordinary annuity.
D) deferred annuity.

Question

Quizplus · Accepted Answer

An annuity due consists of equal payments at the beginning of each period, which matches the description of the Powerball Lottery payout structure with the first payment being immediate.

The Powerball Lottery Pays Out Winnings in Twenty Payments, with the First