An annuity due:
A) is an annuity in which the cash flows occur at the beginning of each period.
B) makes the cash flow in the beginning of year 1 look like it's a cash flow of today.
C) moves the cash flow from the end of the year to the beginning, which looks like the end of the previous year.
D) the appropriate tax rate.

Question

Quizplus · Accepted Answer

An annuity due is characterized by cash flows that occur at the beginning of each period, unlike ordinary annuities where cash flows occur at the end of each period.

An Annuity Due