When payments take place at the beginning of the period,the series of cash flows is called ________.
A)ordinary annuity
B)annuity due
C)posterior annuity
D)anterior annuity

Question

Quizplus · Accepted Answer

An annuity due is a series of cash flows where payments occur at the beginning of each period, meaning the first payment is made immediately. This is different from an ordinary annuity where payments occur at the end of each period. Therefore, the correct choice for the given question is B, annuity due.

When Payments Take Place at the Beginning of the Period,the