You just purchased some furniture from the LB Home Store. The store sold you the furniture under the agreement that you will pay $248 a month for 36 months starting one month from today. Your loan can be described as a(n):

Question

Quizplus · Accepted Answer

An ordinary annuity involves equal payments made at the end of each period over a fixed period of time. Since the payments for the furniture are made at the end of each month for 36 months, it fits the definition of an ordinary annuity.

You Just Purchased Some Furniture from the LB Home Store