Interest is not calculated in ordinary annuities.

Question

Quizplus · Accepted Answer

Interest is indeed calculated in ordinary annuities. In fact, it is a fundamental component of how an annuity works. An annuity is a financial product that involves making regular payments or contributions over a set period of time, with the goal of accumulating a larger sum of money or achieving a certain level of income in the future. The interest earned on these contributions is a crucial factor in determining the eventual value of the annuity.

Interest Is Not Calculated in Ordinary Annuities